To achieve long term capital appreciation principally through investment in fast growing unquoted and AIM quoted companies in the UK. The company intends to investing the majority of its funds in a diversified portfolio of shares and securities in smaller, unquoted UK companies and AIM/NEX quoted companies that meet the criteria for VCT qualifying investments and have strong growth potential.
Management fee is 2.5% p.a. of NAV. Performance fee payable of 20% of the amount by which the increase in the adjusted NAV since Admission exceeds the hurdle amount of 6% p.a. Contract is terminable on 1 years notice.
Dividends will be paid from income from the portfolio of cash, UK gilts and UK corporate bonds. Once the portfolio of Company is more fully invested in smaller unquoted UK companies and as capital profits are realised, the Directors intend to adopt a policy of distributing a substantial proportion of cash returns from the portfolio, including realised capital gains. After the initial investment period, the Directors aim to pursue a progressive dividend policy at a rate they believe will be sustainable, taking into account the level of cash returns from realisations in the portfolio, prevailing market conditions and re-investment opportunities.