Baronsmead VCT 5 (BAV) has launched a small new share offer of £3.75m, but this will only be open to existing investors until 13 February. They will have the option of subscribing for up to £2m of the shares, and if this quota is not fully subscribed then it will be added to the £1.75m available to all investors from 13 February.
The offer is due to close on 2 April but is likely to sell out sooner as the Baronsmead VCTs are popular due to their good performance and dividend paying record, and Baronsmead 1-4 are not doing a raising this year. This is also the case with the Northern VCTs, so capacity is reduced.
Baronsmead VCT 5 invests in both Alternative Investment Market (Aim) listed and unquoted companies, although at the end of September last year the former accounted for more than three quarters of assets. This fund was launched in 2006 as an Aim VCT but in 2010 changed its investment mandate to include more unquoted investments. The transition is taking longer than expected because of the strong performance of the Aim listed holdings in the portfolio, meaning that these holdings have increased as a proportion of the portfolio due to rising valuations rather than further investment.
In terms of their unquoted investments, the Baronsmead VCTs focus on management buy-outs and management buy-ins. They target well-established companies with profits at or above £1m and high growth potential, focusing on: consumer markets; energy & environmental; healthcare & education; financial services; business services; and technology & telecommunications.
Baronsmead VCT 5 seeks to maintain a minimum level of annual dividends of 4p per share.
The minimum amount of Baronsmead VCT 5 shares you can subscribe for is £3,000.
