Are VCTs set to enjoy a renaissance as an attractive investment product for high earners? Dana Ward comments on current developments
In 2009/2010 Venture Capitalist Trust (VCT) funds raised were reported to be approximately double the level of funds raised in the previous tax year. A number of VCT providers have been able to attract investor attention with target dividend yields as high as 7%.
Asset-backed VCTs are also proving attractive with VCTs being able to secure more attractive terms for their investors due to bank lending pressures restricting traditional bank funding routes. The unwillingness of banks to lend is currently enhancing the deal flow for VCTs thereby increasing VCT product appeal to investors.
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Are VCTs set to enjoy a renaissance as an attractive investment product for high earners? Dana Ward comments on current developments
In 2009/2010 Venture Capitalist Trust (VCT) funds raised were reported to be approximately double the level of funds raised in the previous tax year. A number of VCT providers have been able to attract investor attention with target dividend yields as high as 7%.
Asset-backed VCTs are also proving attractive with VCTs being able to secure more attractive terms for their investors due to bank lending pressures restricting traditional bank funding routes. The unwillingness of banks to lend is currently enhancing the deal flow for VCTs thereby increasing VCT product appeal to investors.
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