The Baronsmead VCTs The Baronsmead VCTs

Supporting the very best early-stage companies on their growth journey.

Supporting the very best early-stage companies on their growth journey.

Founded in 1995, the Baronsmead VCTs combine rich heritage and experience with a dynamic, entrepreneurial approach, to invest in the UK’s very best early stage growth businesses.

Baronsmead Venture Trust plc (BVT) and Baronsmead Second Venture Trust plc (BSVT) are tax-efficient venture capital trusts, offering private investors the opportunity to achieve long term investment returns. The Companies manage c£350m assets in aggregate.

The Baronsmead VCTs benefit from the extensive experience, resources and network of Gresham House as their investment manager. This enables us to resource our investees financially and practically, offering mentorship and advice through their development cycle.

We seek to invest in innovative companies that we believe will be crucial to the UK economy in the years to come, providing capital and expertise to accelerate growth at a critical stage of their journey.

Drawing on our VCT investment team’s extensive entrepreneurial network and specialist skills, we invest capital at pivotal points to push exciting businesses to the next level.

We concentrate our efforts on sectors, markets and companies benefiting from long term structural growth in order to benefit our investors and investees.

Each VCT has a ‘generalist’ approach, focusing primarily on unquoted, AIM-traded and other listed companies, often co-investing with each other.

 

What are Venture Capital Trusts (VCTs)?

First introduced by the UK Government in 1995, Venture Capital Trusts (VCTs) are listed, closed-ended tax-efficient investment schemes, designed to give investors exposure to businesses and industries in an early stage of growth. VCTs offer investors a range of different benefits.

VCTs allow investors to benefit from:

  • Income VCT tax relief of up to 30% of their subscription amount on new shares (some/all of which investors may have to repay if they sell within five years)
  • Tax-free dividends
  • Tax-free gains on sale of shares (after five years of new shares being issued)

 

The UK Government brought in VCTs to encourage investments in smaller or ‘venture’ UK companies. VCTs open for investment can provide very attractive opportunities for investors, alongside wider benefits for the UK economy.

Our approach to investee companies remains based on this entrepreneurial mindset and is built on established networks, relationships and skills developed over many years working together and with our investee management teams. The Baronsmead VCTs offer investors the opportunity to support the future of British business through both our investment and our experience.

 

VCT investments are high risk and for the long term. Subject to certain criteria, the VCT and the individuals who invest in them can benefit from various tax benefits. VCT tax relief, however, depends on the personal circumstances of holders of shares in VCTs. If a VCT loses its status as a VCT, an investor could lose the tax reliefs available on VCT shares resulting in adverse tax consequences for the investor.

Read more on Venture Capital Trusts here >> and in our Investor Guide>>.

VCT Investment Policies

The Baronsmead VCTs have established and diverse portfolios of unquoted, AIM-traded and other companies, which are managed and developed by Gresham House.

The Investment Policies of the Baronsmead VCTs

The Company’s investment policy is to invest primarily in a diverse portfolio of UK growth businesses, whether unquoted or traded on AIM, which are substantially based in the UK, although many of these investees may have some trade overseas.

Investments are made selectively across a range of sectors in companies that have the potential to grow and enhance their value and which will diversify the portfolio.

The company will make investments in accordance with the prevailing VCT legislation which places restrictions, inter alia, on the type and age of investee companies as well as the maximum amount of investment that such investee companies may receive.

Marketing of shares to retail investors

We confirm the shares of Baronsmead Venture Trust and Baronsmead Second Venture Trust are ‘excluded securities’ in accordance with the Financial Conduct Authority’s VCT Rules and are not, therefore, subject to the restrictions applicable to the promotion of non mainstream pooled investments.

Sustainable investing

As a signatory to the UN-supported Principles for Responsible investment (PRI), Gresham House seeks to integrate sustainable investment practices into all aspects of investment selection and monitoring.

We believe that understanding and, wherever possible, improving on Environmental, Social, Economic and Governance (ESG) performance drives long-term value.

The Baronsmead VCTs invest in both public and private companies and our investment teams consider ESG factors when investing in new businesses.

 

To read more about our Public Equity Sustainable Investment Policy and Private Equity Sustainable Investment Policy, please click on the links below:

PUBLIC EQUITY SUSTAINABLE INVESTMENT POLICY          PRIVATE EQUITY SUSTAINABLE INVESTMENT POLICY

Baronsmead Venture Trust plc

The Baronsmead funds invest in the future of British business – supporting innovative smaller companies that we believe are the driving force of the UK economy.

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Baronsmead Second Venture Trust plc

­­The Baronsmead funds invest primarily in a diverse portfolio of UK growth businesses, across a range of sectors and in companies that have the potential to grow and enhance their value.

READ MORE

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