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Octopus Investments launches new Fund
Octopus Titan VCT 1 plc and Octopus Titan VCT 2 plc
25th October 2007
Octopus Investments (“Octopus”), the investment solutions provider, today announces that it is launching a new Venture Capital Trust (“VCT”). The focus of the new Fund will be to generate real returns on investors’ money over the long term by investing into early-stage and expansion-stage unquoted companies. The typical deal size will range from £500,000 to £2 million and the portfolio is expected to encompass investments in 20-25 unquoted companies. Measuring the Fund’s performance in real terms as opposed to against an index (which can go down as well as up), the wider industry practice, delivers a purer picture of the investments’ absolute performance. The Fund will be structured as a twin VCT to enable it to make investments of up to £2 million per company, twice the amount possible for single VCTs. Investors’ money will be split equally between the two funds. The Offer, due to open early November 2007, will allocate between 2 million and 40 million Ordinary Shares to the public at a price of 100p per share. It is anticipated that the Offer will close on the 4th April 2008 or when the maximum subscription is reached, depending on which event occurs first. The Fund will be managed by the Octopus Ventures team (formerly Katalyst Ventures) who have a strong track record of making investments into early-stage unquoted companies. The Octopus Ventures team also benefits from its investor group which can be instrumental in identifying and providing suitable investment opportunities. Across its entire portfolio, including investments not yet sold, the team’s annual rate of return over the last seven years has been 27% based on BVCA guidelines. Key advantages of VCTs are the very attractive tax benefits on offer to investors. These benefits include upfront income tax relief of 30% on amounts invested between £3,000 and £200,000 if the shares are held for five years; dividends paid and disposal of Shares from the Fund are free of income tax and capital gains tax respectively. Simon Rogerson, CEO of Octopus Investments said:
“Octopus enjoys access to best in class early-stage companies seeking investment. The acquisition of Octopus Ventures, which boasts a high calibre team and impressive track record, and the imminent launch of the Octopus Titan 1 & 2 VCTs enables us to provide investors with access to an increasingly important part of the investment market with the potential for superior returns.” Alex Macpherson, Octopus Ventures team said:
“The launch of the VCTs enables investors to benefit from our proven expertise in identifying and investing in highly attractive opportunities that have the added advantages of 30% upfront tax relief. We aim to source a range of investment opportunities that meet our strict criteria of market demand, strong management teams and sound financial discipline.” -ENDS- Contacts Octopus Investments
Simon Rogerson, Chief Executive
Chris Hulatt, Director
Tel: +44 (0) 207 710 2800 The Millbrook Partnership
Tim Grey / Michaela Hopkins
Tel: +44 (0) 207 520 9455 Notes to Editors About Octopus Investments www.octopusinvestments.com
Established in 2000, Octopus Investments is one of the UK’s most innovative and fastest growing investment companies. With 11,000 investors and almost £400 million under management across its range of products, Octopus Investments has dominated the VCT market since 2004. IFAs recently voted the Company “Best VCT Provider of the Year” for 2007 in the Professional Adviser Awards and Octopus VCTs have also been short listed for “VCT of the Year” in each of the last three years. Members of the Octopus team have over 100 years of combined experience in successfully sourcing, making and maximising the value of investments. As at 1st October 2007, two of the VCTs managed by Octopus Investments, Eclipse VCT and Eclipse VCT 2, were the top two performing VCTs out of 26 generalist VCTs that raised funds in the 2004/20
Publisher Contact Information:
Octopus Ventures
+44 (0) 207 710 2800
-Company profile of Octopus Ventures
Past press releases of Octopus Ventures.
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