The two Mobeus VCTs have sold out, raising £90 million in just 45 days, including the £70 million offer + £20 million overallotments. Of this £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 £338.5 million and a combined portfolio of around 50 companies.
The VCTs recently increased their dividend target to 7% of NAV. Over the five years to June 2024, the VCTs have generated an average NAV total return of 71.2%.
Alex Davies, CEO and Founder of Wealth Club said, “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. 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.
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.”
