Albion Capital, the £1bn venture capital firm, announced today plans to raise £50m through new share offerings across three venture capital trusts (VCTs), with the potential for a £30m over-allotment.
The fundraising effort comes as the group moves to streamline its VCT structure, with plans to consolidate its six existing trusts into three.
The new share offers, set to launch on 6 January 2025, will provide investors with access to a portfolio of innovative B2B companies in the software, healthcare, and deep technology sectors.
Albion portfolio companies include Quantexa, an AI-driven intelligence platform; Proveca, a specialist in paediatric pharmaceuticals; and Oviva, a digital health company focusing on obesity management.
Albion will launch the new raises following a vote of confidence by the UK government, which extended EIS and VCT schemes until 2035, providing certainty for the sector and the investors who use them to gain exposure to exciting early-stage companies.
“Despite the uncertain global macro and geopolitical backdrop, it’s an exciting time to be involved in the UK tech space, with category-leading businesses emerging across software, climate tech, and health tech building solutions for a fast changing world,” said Will Fraser-Allen, Managing Partner at Albion Capital.
“A growth focused Labour government, having recently extended the VCT scheme until 2035, provides an environment in which the Albion backed technology companies can thrive and continue to drive positive impact across the UK.
“A VCT is a great vehicle that allows retail investors to access promising private UK enterprises, whilst also channelling patient capital to young companies to help them grow. As one of the UK’s largest and most established VCT managers, we are well positioned to connect investors to this vibrant ecosystem, enabling them to benefit from investing in high-growth opportunities.”
Robust track record
Albion has provided investors robust returns achieved through a series of exits in recent years.
Performance figures indicate that the three Albion Capital VCTs included in the offers have delivered average tax-free annual returns of 5.8% and 7.4% over five and ten years respectively, measured to 30 June 2024 and excluding tax relief.
The recent disposal of Egress to US cyber security firm KnowBe4 generated more than £60m in proceeds for the Albion VCTs—marking a record return from a single investment. Over the past three years, the firm has deployed £167m across 47 investments whilst securing £132m through 16 profitable exits.