Ingenious VCTs to sell Creamfields stake

Two of Ingenious’ venture capital trusts (VCTs) plan to sell their stake in the Creamfields dance music festival for a total consideration of £2.78m.

Ingenious Live VCT 1 (ILV1) and Ingenious Live VCT 2 (ILV2) have agreed to exit from CFDT, the firm they launched with the Young Vic Company and C.I. (Events) in 2008 to promote the festival when it switched from being a one-day concert to a weekend camping event.

Under the deal C.I. (Events), which is the Cream Group’s festival vehicle, will acquire all the share capital of CFDT. C.I. (Events), which will pay out £1.084m to the three other parties.

In addition, the loan notes that were issued to ILV1 and ILV2 under the original investment deal will be repaid at £1.19m, while the two VCTs will split a premium of £510,000.

The two funds will also retain a share of further upside in the two years following sale, in the event that the Creamfields brand is sold for an amount above an agreed exit multiple.

A statement by the funds says: “The deal will represent a significant return on [ILV1 and ILV2’s] original investment in Creamfields.”

The VCTs currently hold investments in the Rewind and Field Day festival brands, as well as exhibitions such as Taste of Christmas and Golf Live.

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