Investment

The two Mobeus VCTs have sold out, raising £90 million, in just 45 days.

In addition to the £70m offer, a further £20m was secured in overallotments. £33.6 million (37%) was raised by Wealth Club.

The manager invests across a wide spectrum of companies; from early-stage ones with less than £500,000 of revenue to later stage, profitable businesses. Successful companies previously backed by Mobeus include Virgin Wines, Auction Technology Group and photography reseller MPB.

The VCTs, Mobeus Income & Growth VCT and the Income & Growth VCT have total net assets of £338.5m and a combined portfolio of around 50 companies.

“Despite a downturn in venture investing over the last couple of years the VCT season has started strongly, with the two Mobeus VCTs raising £90 million in just 45 days,” said Alex Davies, CEO and founder of Wealth Club. 

“More than a third (37%) of the raise came from 1,277 Wealth Club’s clients. The success of that offer means the whole market is up around 58% on where it was this time last year.

LendInvest secures £300m financing syndicate

“Much of the offer’s appeal can be put down to Mobeus’s consistently excellent returns. However, the prospect of significant tax rises for wealthier individuals in the coming Budget is also spurring demand more broadly.

“VCTs are one of the most tax efficient investments available – you get up to 30% income tax relief when you invest whilst all growth and dividends are tax free. Furthermore, because the investments they make do so much to create jobs and economic growth, it seems highly unlikely VCTS will be tinkered with by the government anytime soon. Indeed, the continued existence of the scheme has recently been confirmed by Rachel Reeves until at least 2035.

“The good news is that, whilst the Mobeus VCTs have sold out for this year, there are still plenty of good VCTs left to choose from either available now or launching imminently. However, as the Mobeus raise shows, if you spot a VCT you like it’s always worth investing early to secure your spot.”

Scaling firms hail treasure trove of advice at FUEL Manchester 2024