Public offer launched for NVM’s Northern 2 VCT

Fund manager NVM Private Equity has launched a public offer of new ordinary shares for its venture capital trust (VCT), Northern 2 VCT, with a target of raising up to £15 million.

Fund manager NVM Private Equity has launched a public offer of new ordinary shares for its venture capital trust (VCT), Northern 2 VCT, with a target of raising up to £15 million.

Northern 2 VCT was originally launched in 1999 and, with net assets of more than £45 million, is one of the largest VCTs in existence in the country, according to the firm. The fund already has holdings in 43 different unquoted companies.

Tim Levett, chairman of NVM Private Equity, says the firm’s three VCTs, Northern 2 VCT, Northern 3 VCT and Northern Venture Trust, are all ‘established funds with substantial investments’ in unquoted growing UK businesses. Levett adds that he believes the firm’s experience in managing funds will attract investors to the public offer.

NVM is offering an initial 81p a share in the offering. There is minimum investment of £5,000 and the offer close on 5 April 2012 for the 2011/12 tax year and 30 April 2012 for the 2012/13 tax year.

In order to provide existing shareholders with the opportunity to realise value, Northern 2 VCT has also launched a tender offer, the firm says in a statement. The company will buy back 10 per cent of its issued share capital at a 3 per cent discount to the published net asset value as at 30 September 2011.

Shareholders can tender as many shares as they wish and are entitled to have at least 10 per cent of their shareholding repurchased by the company. 

In the past 12 months, the NVM funds have invested more than £27 million in growing businesses across the UK, including Cawood Scientific, Tinglobal Holdings, Kitwave One, Control Risks Group, Closer2 Investments and Altacor. Typically, NVM looks to invest between £2 million and £10 million in each transaction.