Octopus launches £50m offer for Titan VCTs

Octopus Investments has opened a £50m offer of shares in its range of Titan VCTs.

Investments are spread across the five tax-efficient investment companies that focus on early-stage growth ideas in the UK.

The five funds hold 45 companies.

Two percentage points will be shaved off the 3 per cent initial management fee for any investors who buy in before 11 November. The share offer will close in September next year, if it has not been fully subscribed before.

The funds’ ongoing charges total 2.3 per cent of NAV annually and a performance fee of 20 per cent.

Octopus ventures team head Alex Macpherson, who manages the range, says he looks for strong management teams with the ability to grow strongly.

“We’ve had some fantastic success stories within the Titan VCT portfolio over the past few years and we continue to see a strong pipeline of investment opportunities,” he says.

“We’re excited to be able to give more people the chance to access the significant potential that this sector of the economy can offer as well as the tax planning benefits VCTs can deliver.”

Octopus plans to merge the five Titan VCTs into one vehicle, although that is subject to shareholder approval. If it goes ahead, the merger will happen later this year.

Octopus managing director Paul Latham says VCTs have become “increasingly popular” with advisers over the years.

“However, recent developments in pensions legislation mean we are seeing an even greater demand from advisers and their clients to planning tools that can complement or even offer an alternative source of income to a pension,” he explains.

“There is a really strong appetite among advisers for VCTs as a result of this, and in particular the Octopus Titan VCTs.

Octopus launched a £20m offer for its two Aim VCTs earlier this month with the option to boost it to £30m if demand warrants it.