Octopus Investments to cease fundraising for EIS products


Octopus Investments has ceased fundraising for its Octopus EIS product, as it explains pension reforms have seen demand grow for the investment firm’s VCT offering.

Earlier this month it was revealed that the group had raised £100m for its new Octopus Titan VCT, making it the largest VCT in the country. New investors made up 67 per cent of the fundraise.

The firm will also stop raising funds for its Octopus Eureka EIS product from 13 May.

Octopus EIS is invested in smaller, unquoted companies, and is aimed at capital preservation. Octopus Eureka EIS, on the other hand, invests in both unquoted companies and those listed on the AIM, which have “significant capital growth” potential.

Octopus Investments will remain an active investor in the EIS space where it manages more than £500m for its existing investors.

“We’re seeing a lot more demand for our range of VCTs on the back of the latest pension reforms as more people look for complementary tax efficient solutions to support their retirement planning,” the company said in a statement.

“With demand on the rise, it makes sense for us to focus on growing our VCT products. We have no immediate plans to undertake further fundraising into our existing EIS products but will continue to review EIS qualifying investment opportunities.”

The VCT sector raised £457.5m in the 2015/16 tax year, which was the highest since 2006, according to the Association of Investment Companies.

Titan VCT, which was launched in 2007, invests in firms such as Zoopla, Secret Escapes and most recently SwiftKey, which was sold to Microsoft in February.