Register interest for the 15th Northern VCTs Shareholder Seminar

The 15th Northern VCTs Shareholder Seminar will be held on the 22nd October 2024.

Those VCT Shareholders wanting to register their interest in attending the VCTs Shareholder Event, please email the VCTs Shareholder Enquiries address below.

Northern VCTs Spring newsletter

The latest Northern VCTs Spring 2024 newsletter is now available.

This edition includes all the latest from Managing Director, Peter Dines, case studies on Warwick Acoustics, MIP Discovery and Wobble Genomics, as well as how to register for the 15th Northern VCTs Shareholder Seminar on the 22nd October.

Why VCTs?

Mercia’s Northern VCT Funds, launched in 1995, are a tax efficient fund with a target annual tax-free dividend of between 4.5% and 5%.

“Using an industry standard procedure and well-justified assumptions, we have shown that venture capital is a compelling addition to investor portfolios. Even at a relatively small proportion of portfolios, it can make a significant difference. The addition of tax reliefs make it even more compelling.”

Investing into VCTs provides investors with exposure to high-growth private companies, which can increase the overall risk and return profile of the investment portfolio as evidenced by Dr Brian Moretta of Hardman & Co.

Tax relief to encourage the support of higher-risk SMEs

UK taxpayers who invest in VCT can claim income tax relief of 30% of the amount invested and receive ongoing tax-free dividends. The government provide these tax reliefs to encourage people to support higher risk smaller businesses, which are important to expanding the UK economy.

A VCT does not replace a pension, but the tax reliefs and tax-free dividends can be complimentary to an investors long term investment plans. Whilst these do carry a degree of risk, as is the nature of all early-stage investment, they do also offer high rewards for those seeking a high-risk, high-reward profile. Despite the tax-free dividends and comparatively low minimum investment, VCTs are not for everyone, as they carry a degree of risk as the companies in which they invest are early-stage businesses.

Peter Dines speaks to Wealth Club

Managing Director of Mercia Ventures, Peter Dines, speaks to Wealth Club about the portfolio, recent investments, the Northern VCT investment approach, and the challenges and opportunities in the current economic climate.

Stimulating a wider economy

Through our Northern VCT funds, Mercia can provide an investment opportunity with exposure to innovative, small companies. Led by highly ambitious management teams, this VCT portfolio has the potential to generate significant value for our VCT shareholders. These portfolio companies are also helping to stimulate the wider UK economy along the way, which satisfies investors seeking responsible investment strategies

Pure Pet Food
Climbing Hangar

Webinar: Exploring the VCT market with James Ramsay

Lineup Systems: A successful exit

Lineup Systems interview with CEO Chris Spalding

Evotix: Acquisition will help create a leading, world-class HSE solution

Evotix interview with CEO Matthew Elson

Fund investment

What do the funds invest in?

Mercia’s Northern VCT funds invest across a range of innovative sectors from Life Science through to Software and Consumer, providing investors access to unique opportunities, Whilst investment into SMEs does carry a degree of risk, as is the nature of all early stage investment, it also offers high rewards for those seeking a high-risk, high-reward profile.

How much do I need to invest?

You can invest up to £200,000 into VCT funds in any tax year. The Northern VCT Funds which Mercia manages has a minimum £6,000 investment level.

What are the risks?

VCTs are not for everyone. They carry a degree of risk as the companies in which they invest are early stage, which can mean less well-established businesses.  It is important that you carefully research the opportunities and seek professional advice from a properly regulated entity or professional.

Why Mercia?

Mercia’s investment team has an established track record delivering returns for shareholders across both private and public sector mandates. Over the years the VCT team has started to build an enviable track record making it one of the most promising VCT teams in the country.

“The average uplift ratio is 2.29x (Exit Multiple / Unrealised Multiple); where a ratio of above 1.00 means the VCT’s exit performance has been stronger than its unrealised performance. This is the highest uplift ratio achieved of all of the VCTs reviewed this year.”

MJ Hudson