VCT firm Draper Esprit has acquired a 30.8 per cent stake in Elderstreet Investments’ holding company Elderstreet Holdings.
Elderstreet, which manages Elderstreet VCT and specialises in software and computer services, has assets of £25m.
As part of the deal, digital technology specialist Draper Esprit would also have the option to acquire shares in Elderstreet.
As initial consideration 73,667 new ordinary shares will be issued for one pence each in the capital of the company. The consideration shares will be subject to an 18-month lock-in and then once admitted to the AIM and ESM, trading will start on 29 November.
Draper Esprit chief executive Simon Cook says: “We have acquired a stake in a leading VCT manager in the UK, who share our core investment philosophy and we are delighted to be working with the experienced Elderstreet team.
“We can now offer to investors access to high growth technology companies through a range of vehicles from EIS funds, to VCTs and an ISA qualifying listed evergreen patient capital vehicle with combined assets of over £350m.
“Draper Esprit is now firmly on the map as one of the major European managers of technology venture capital and growth capital with a long history of successful acquisitions such as 3i’s European VC portfolio, Prelude Investment Trust, Top Technology fund and Cazenove’s VC fund.”
Elderstreet Investments Michael Jackson chairman adds: “Draper Esprit and Elderstreet are well-aligned in terms of investment strategy and most importantly a culture of active asset management in the unquoted companies sector.
“For our VCT shareholders this co-investment agreement brings enhanced deal flow and the ability to invest alongside Draper Esprit funds into larger more established fast growing businesses. Given the recent changes in VCT rules imposed last year we view the deal as a positive step forward for our VCT shareholders”.