- Fundraising capacity looks similar to that of last year
- However, VCT tax benefits have grown even more attractive
Budget uncertainty led to a muted start to the 2024-25 venture capital trust (VCT) fundraising season. However, with VCTs emerging unscathed by the chancellor's plans and the tax year end drawing closer, fundraising is starting to pick up.
“Supply wise, so far £878.9mn-worth of VCT capacity has become available,” Nick Hyett, an investment manager at Wealth Club, explains. Some big names, such as Octopus Titan VCT (OTV2), have yet to open, which might make overall capacity feel “a bit constrained”, he adds. However, Hyett is hopeful that capacity will “probably end up something closer to where we were last year at £1.2bn”.