Growth Capital VCT
Open for new investment
A generalist VCT aiming to generate returns from a diverse portfolio of both private and AIM quoted growth capital investments.
Share offer
Up to £10m with £10m over-allotment facility
Running from
29 October 2021 to
26 October 2022
Next application deadline
Midday on
24 October 2022
Next allotment date
TBC
What is the Growth Capital VCT?
Seneca Growth Capital VCT Plc is now a generalist VCT aiming to generate returns from a diverse portfolio of both private and AIM quoted growth capital investments. These investment returns are intended to provide Investors with an attractive income stream and also capital growth over the longer term. The VCT is managed by Seneca Partners Limited and comprises two share classes:
B Share Pool: Continuing to fundraise, make new investments and secure realisations where possible to support our dividend ambitions.
Ordinary Share Pool: Strategy remains to continue to realise investments with the objective of maximising value and returning proceeds to shareholders.
Reasons to invest
Stable NAV growth and dividend performance
Total returns of 11.3% since launch in 2018 and a track record of two dividend payments a year with 9p in dividends paid since launch
Experienced investment manager
A multi-disciplined and award-winning team with core strengths in equity, debt and corporate advisory, aiming to deliver a diverse portfolio. Target return in each investee company is 2x*
*target return is not guaranteed
Tax reliefs
Tax advantages including 30% income tax relief, CGT-exempt gains and tax-free dividends
Risks to consider
Risks to capital
The value of an investment, and income from it can fall as well as rise. Investors could end up getting back less than they put in.
Tax treatment may change
Tax treatment depends on individual circumstances and may change in the future. Tax reliefs are dependent on the VCT maintaining HMRC approval.
Volatility and liquidity
VCT shares may go down as well as up. They are less liquid than mainstream investments and therefore may be more difficult to sell.
April 2022 shareholder presentation
PDF Download: Seneca VCT Shareholder Update Presentation April 2022
Companies we've invested in
SilkFred Ltd
SilkFred Ltd is a fast-growing fashion e-commerce platform. It was created in 2012 to help independent fashion brands promote and sell online.
- Deal type: private
- Invested: £500,000
- Date: December 2018
SkinBioTherapeutics Plc
SkinBioTherapeutics is a life science company focused on skin health.
- Deal type: AIM
- Invested: £750,000
- Date: February 2019
Vizibl / Old St Labs
The Vizibl platform acts as an extremely efficient and tailored project management tool, aimed specifically at those teams and individuals managing suppliers and procurement within large, blue chip customers.
- Deal type: Private
- Invested: £500,000
- Date: March 2019
VCT highlights
The above shows the performance of the B Share Portfolio since 2018 which is the entire period for this share class. Past performance is not a guide to future returns. Your capital is at risk, you may get back less than you invest. For more details concerning the VCT including its past performance and relevant fee please see its current prospectus.
Important information
You should only rely on the information provided in the Prospectus and relevant Key Information Document when deciding whether to make an investment. Seneca Partners Ltd does not offer financial or taxation advice. If you are unsure whether an investment of this type is suitable, please seek advice from your financial adviser.
VCTs are high-risk and should be considered a long term investment. They should only form part of a balanced portfolio and you should not invest money you cannot afford to lose. They can fall as well as rise in value, so you could get back less than you invest. They also tend to be illiquid and hard to sell at value. Dividends are variable and not guaranteed.
Past performance is not a guide to future returns. Target returns are not guaranteed. Capital at risk.
How can I invest?
We recommend that you seek independent financial advice before you invest. Please make sure that you have fully read and understood the Prospectus. Further information is available on www.senecavct.co.uk. To make an investment into this product please complete and return the appropriate Application Form available on these pages. Alternatively, please speak to our Client Relations team for more information.
Further information
Seneca Partners is the Investment Manager responsible for the management of the Company’s B share pool investments. Seneca is an award-winning specialist SME investment and advisory business. Formed in 2010, and headquartered in the North West of England, the management team has extensive experience across a range of sectors, including private equity, corporate finance, wealth management, accountancy and stockbroking. They are experienced growth capital investors, having raised and deployed more than £130 million of EIS and VCT capital since 2012.
The Seneca Growth Capital VCT is managed by the same team behind the EIS funds, including shareholder directors of Seneca Partners Ltd – Richard Manley, Ian Currie, and Tim Murphy. Click here for more information on the team.
The VCT follows the same generalist investment strategy the manager applies to its EIS Portfolio Fund. The VCT has benefitted and is expected to continue to benefit from the same deal flow, investment process and co-investment opportunities that come from Seneca’s EIS activity, which allows the VCT to participate in a higher number of investments of a larger scale into more established businesses than otherwise possible for a VCT of its size.
Seneca seeks well managed businesses with strong leadership teams that can demonstrate established and proven concepts in addition to growth potential. Businesses may be unquoted or AIM listed.
The minimum investment amount for the VCT is £3,000.
The VCT targets a dividend payment of 3p per share p.a. with an ambition to increase this to c. 5% p.a. of the B Share NAV by 2023 (subject to B Share Pool investment performance and an intention to also maintain a relatively stable NAV per B Share).
Since March 2019, the VCT has paid dividends totalling 9p per share. Dividends are paid twice annually.
Please note, dividends are variable and not guaranteed.
The NAV (Net Asset Value) of a VCT is the value of all the assets of the VCT minus any liabilities. The NAV is calculated and published quarterly. Full interim accounts and annual accounts are also published as at end-June and end-December respectively. The NAV, alongside dividends paid, is a good way of tracking the performance of a VCT.
