The Pembroke VCT has announced an offer for up to £60 million (£40 million + £20 million overallotment).
The VCTs have total net assets of £224.1 million and a combined portfolio of around 45 companies.
The manager invests in business models with premium pricing potential, with a bias towards premium consumer brands, technology and business services.
Highlights within the portfolio include LYMA Life, the medical grade beauty laser and supplement business, and Five Guys UK, the burger chain.
Over the five years to June 2024, the VCTs have generated an average NAV total return of 18.3% and the VCT targets an annual dividend of 5p. (Latest ex-dividend NAV c.102.6p).
Jonathan Moyes, Head of Investment Research at Wealth Club said, “Since launching its first VCT in 2013, the manager has developed a successful track record for backing premium consumer brands.
“Historic successes include Pasta Evangelists, the premium fresh pasta delivery chain, and ME+EM, the luxury fashion brand popular with celebrities, royals and politicians alike. It delivered a 16.1x realised return for the VCT in 2022.
“The VCT appears willing to use the experience of lead manager Andrew Wolfson, to back companies at an earlier stage, with greater firepower, and in a sector that many of its peers would be unwilling to match. A notable example being LYMA Life, now the VCT’s largest holding after an initial £2 million investment was recently valued at £31.2 million.
“Longer term, the VCT benefits from a proven management team and the wider resources of Oakley Capital. After several years of successful fundraises, the VCT has grown assets to more than £200 million, meaning it should be able to provide that firepower to early-stage companies without having to bet the ranch in the process, improving the portfolio’s risk management.
“This is a distinctive VCT and should complement a wider VCT portfolio.”
