RSS

Core beats fundraising forecasts

Article Date:  May 10 2007 Oliver Haill

Against an apparently unfriendly VCT fundraising environment, Core Capital has topped its £20 million fundraising target by tugging in an impressive £21.7 million for its fourth and fifth VCTs.

Core partner Stephen Edwards was particularly pleased with the level of demand and believes it reflects investors taste for the ‘transparency’ of the company’s model as well as performance so far. Recent results showed the first Core VCT has delivered a total return of 3.7 per cent since opening to 98.02p per share, helping to entice this new swathe of investors.

Core, which charges no management fees to its investors, raised £44 million for VCTs I, II and III in the previous two years and in the past twelve months it has poured a portion of funds into five new investments.

Says Edwards: ‘The structure of Core VCTs IV & V, targeting the “mezzanine” layer of the investment structure, significantly reduces investor risk whilst maintaining the upside potential of backing successful, growing UK SME businesses. It also allows Core to actively target investments of up to £8 million, which is where we believe the market opportunity is strongest.'

Comments 

There are currently no comments on this article

Sign up and get...

  • Regular GrowthBusiness newsletters
  • Post comments on articles
Sign up

Trying to raise business finance?

The Vistage Guide to Raising Finance in The New Economy. It tells you what your options are and how best to present your case for business finance. Simply visit www.neweconomyblog.co.uk/rf2 to request your free copy.

Hiscox Business Insurance 

Life’s full of uncertainties, but you never want to be in any doubt about your business insurance. Hiscox offers broad and inclusive business insurance available online. You can tailor a policy to suit your business needs from a broad range of covers. Find out more.

Selecting the right IT strategy in 2010

Owner managers and CEOs of fast-growing companies want IT-applications that accelerate competitive advantage and improve operational efficiency. This free whitepaper helps you plan and choose the right IT strategy for your business in 2010. Download ‘Selecting The Right Software Vendor’.

Research

  • Directors' Pay AIM 2009

    What should an AIM company pay its CEO or FD?
    What should a non-executive director or chairman expect to be paid?
    What benchmarks should AIM remuneration committee members be using when
    setting pay?

VCT Special Report 2009

This reports principle aim is to provide business owners seeking funding with information about the amount of funds that VCTs have to invest.

Cash Shells Special Report 2009

A comprehensive overview of cash shells on AIM and PLUS, companies that have become a significant feature on the market landscape.

More

Events Calendar

The Media Magnate Awards 2009

26th March, Vinopolis, London

More

More News: Fundraising Deals

Kromek raises Series D round

A Durham University spin-out with technology to help detect terrorist threats is now valued at £52 million following a fourth round of financing.

ControlCircle raises £6 million

A company which manages data centres and internet connections for websites including KPMG and Rightmove has raised £6 million in growth capital.

HG Tech Fund opens for investment

A new fund is being launched under the Enterprise Investment Scheme (EIS), planning to secure tax breaks for its investors by backing growing companies.

Advertisement

Related articles

Investcorp buys TDX stake

Asset management firm Investcorp has purchased a stake of 40 per cent in consumer debt management specialist TDX Group for £28 million.

Market sentiment holds back SPARK VCTs

The managers of the three SPARK VCTs say poor market sentiment is restricting exit opportunities and constraining them from making new investments. They add that the environment for both disposals and funding ‘shows no sign of improving in the short term’.

Investors deserting small-caps, says VCT

Julian Avery, chairman of Invesco Perpetual’s AIM VCT, says the sharp decline in the fund’s assets reflects ‘extreme aversion to investment in UK companies with low market capitalisations’. Net assets shrunk to £28.4 million in the year to May, a decline of 41.4 per cent.

VCT’s fundraising falls short

Edge Performance VCT, which aimed to raise £25 million in an offer of ‘D’ shares straddling two tax years, has brought in £19.2 million. The VCT, which focuses on the entertainment industry, fell short of its targeted sum despite twice extending the offer’s closing date.

Poll

What should Alistair Darling deliver in the Budget?




Have your vote on current issues

People who read this also read

  • ProVen pulls fundraising

    The crowded VCT fundraising market has seen its first casualty after Beringea, which manages the ProVen and ProVen Media VCTs, pulled its £30 million fundraising for ProVen 3.

  • VCT fundraising falls again

    Venture capital trusts (VCTs) raised £150 million in the year to April 2009, the third consecutive annual fall in fundraising for the tax-efficient investment vehicles.

  • First institutional fundraising for wave energy venture

    ORECon, the Devon-based developer of a device to harness energy from waves, has received $24 million (£12.1 million) from a syndicate of European and US venture capital houses. Led by Advent Venture Partners, the syndicate also includes Venrock, Wellington Partners and Northzone Ventures.

  • How to hit the jackpot

    Persuading investors to part with their cash requires guts, gall and a bit of good luck, but it’s all too easy to misjudge your audience and fall flat. GrowthBusiness explains what not to do when trying to get funding.

  • Growth companies to benefit from fundraising bonanza

    As much as £300 million is expected to be raised this tax year for investment in growing businesses, according to fund managers.

White Papers

Better Roads

Serves the information needs of governments and construction contractors involved in Federal, State, County, City and Township highway, road and bridge construction, winter maintenance, roadside and vegetation management and other highway-related projects.

Defense Technology International

Is the one publication focusing on the critical role of defense technologies in programs, policies, programs and funding, providing readers with integrated intelligence and global perspective in Land, Sea, and Air.

FierceGovernmentIT

Is a free, three times a week email briefing for government employees and contractors on the latest government technology news.

More