Karteek Patel

Venture Capital Trusts (VCTs): A British Success Story Introduced in 1994 by Chancellor Ken Clarke, Venture Capital Trusts (VCTs) were designed to link investors with promising private companies, providing essential growth funding. Over the past 30 years, VCTs have raised over £12 billion, supporting hundreds of start-ups. In 2022/23, VCTs raised £1.08 billion, a sharp contrast to the £160 million raised in their first year. How Do VCTs Work? VCTs are investment trusts pooling funds from individuals to support small, high-growth companies. Notable VCT-backed successes include Five Guys, Wise, Zoopla, and Lucky Saint. These firms employ an average of 68 people each, compared to the 11-employee average for small businesses, contributing nearly 100,000 UK jobs. A Decade-Long Extension The government has extended the VCT scheme until 2035, boosting investor confidence in its role as a driver of economic growth. Why Consider a VCT? VCTs offer significant tax benefits, including: 30% income tax relief (if shares are held for five years) Tax-free dividends Exemption from capital gains tax However, they carry high risks as they focus on start-ups, requiring long-term commitment and a tolerance for potential losses. Is a VCT Right for You? While VCTs are a rewarding way to support innovation, they are best suited for experienced investors with a high-risk appetite. With proper due diligence, VCTs can offer unique opportunities to back British entrepreneurship. Z. Karim

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The basic rate of capital gains tax (CGT) will increase from 10% to 18% and the higher/additional rate will increase from 20% to 24%. - Check out our Podcast!

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Last year, we partnered with Haatch to open up their SEIS Fund to retail investors via Crowdcube, at a lower entry point than had previously been available. We have the technology and regulatory permissions to make processing smaller ticket, private market investors a breeze. Two weeks ago today, we launched their final 2024/25 tax year SEIS Fund on Crowdcube. Today, only 14 days later, we'll close the campaign. 262 investors have now invested £1m which is roughly 1/3 of the fund. Only an allocation of £100k remains before it closes. We have loved working with the Haatch team and look forward to bringing more retail investors access to all of the sizeable tax benefits that come from SEIS fund investing. As more and more people in the UK get dragged into a higher rate tax band these investment opportunities are becoming much more popular. Thanks to Fred Soneya , Jonathan Keeling and all the team here at CC for making this happen so efficiently. You can check out the offer below. https://lnkd.in/eVhXqdsQ Risk Warning This is a high risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more: bit.ly/3u8ZTH0

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#Venture is never easy - and we welcome the UK government's initiative to unlock additional capital for high-growth UK private companies, and to boost retirement income for UK workers. However, the way forward is more complex than what one might think. Have a look at the interview of our CIO, David Clark, to understand what investors need to know before building a #venturecapital investment programme.

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This Investors' Chronicle article is one of the most thoughtful pieces I have seen on reviving the UK small-cap sector. It covers the public market issues from all angles: costs, liquidity, tax incentives, institutional support. And the voice of the company comes through loud and clear. Often it doesn't. Very pleased to be one of what must have been many market participants to talk to Michael Fahy, CFA. Now is not the time to go quiet on the benefits of growth companies to the UK economy! The Quoted Companies Alliance #growthcapital #midcaps #smallcaps #ukeconomy #aim #aquis #publicequity #liquidity #investment #wealthcreation #backingbritain #entrepreneurs https://lnkd.in/ecmiU59D

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💳 Pitchbook have released their Global Private Debt Report for H1 2024 💳 💳 Private debt continues to demonstrate impressive performance and robust fundraising growth, driven by strong demand and attractive returns. 💳 The resilience of private debt strategies, particularly in direct lending and mezzanine funds, positions them favourably for future opportunities, despite emerging challenges from refinancing pressures and competitive dynamics. Swipe 👉 to read the key takeaways or find the full Pitchbook report linked in the comments. #PrivateDebt #Investment #MarketTrends #LBO #Finance

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Are managers of public pensions mismanaging the money? Stay ahead in the investment world by subscribing to our YouTube channel and Weekly Newsletter for the latest economic news, expert analysis, and market insights! YouTube: https://buff.ly/4dMyjDK Smart Investing Newsletter: https://buff.ly/3rQznVl #pensions #finance #FinancialAdvisor #investments #investing #wealthmanagement #assets #treasuries #bonds #interestrates

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October performances (all in Euro): Equities: marginally up. Bonds: nearly 2% down. 60-40: Zero return. And this is with ETF fees only. If you are lucky enough to own a 60-40 portfolio through an advisor, wealth manager, or private bank, the return likely is negative. Blokland Smart Multi-Asset Fund +2.8% (after fees) You will find our latest Factsheet attached below. If you have any questions, please don't hesitate to reach out. Ook gewoon in het Nederlands natuurlijk!

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IGL (Inverse Group LTD) is actively searching for businesses to match with our vetted UK-based investors and acquirers. We currently have active mandates across various investment and acquisition opportunities: 💚 £250,000 investment: Ideal for revenue-generating companies with 1 to 2 years of accounts, profitable or small losses, and a need for marketing and growth support. This is sector-agnostic. 3-5 year return on investment. Max valuation £1m, with no future funding required. 💚 £500,000 investment: Targeting revenue-generating businesses that are either in a turnaround phase or showing small profits. This is perfect for older business owners preparing for exit or good businesses that failed to raise funding. Sector agnostic. 18-month return on investment. 💚 £2,000,000 investment: Seeking companies with over £2M in revenue and profitable EBITDA, particularly those serving the real-world economy with a focus on fast, repeatable retail. 5 year + return on investment. On the acquisition front, we’re interested in businesses with a revenue range between £1M - £5M, located in the UK or EU, with a preference for London or those adaptable to remote management. We are particularly interested in sectors such as Health & Beauty, Entertainment, Consumer Goods (Apparel, Drinks, Pet Food), E-commerce, and Clean Tech. If you own or know of a business that fits these profiles and is considering investment or acquisition, please reach out to us. #Fundraising #Founder #Investment #AngelInvestor #VentureCapital

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Afternoon, my latest blog on Labour spending and the possible impact on rates and gilts.

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🌍 Upcoming fund close – SEIS 🌍 Following the launch of our SEIS fund we are now counting down to the first close of the fund on the 9th August. The SEIS fund will invest in early-stage startups across the UK that are accelerating the transition to net zero and a green economy.    The SEIS fund will build on the progress of OnePlanetCapital’s EIS fund which was launched in 2021 and has grown to £10m of assets under management with 31 investments made.  For further information visit our website - https://lnkd.in/eqdcwBMf Don’t invest unless you’re prepared to lose all the money you invest. This is a high‑risk investment and you are unlikely to be protected if something goes wrong. Investment in the OnePlanetCapital Climate Change SEIS is restricted to Professional Clients, High Net-Worth Investors and Self-Certified Sophisticated Investors. Always take time when considering your investment decisions. Financial advice is recommended.

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Budget Flash – Is the EIS & VCT Industry Too Complacent Regarding The Chancellor? A few weeks before the UK election in 2019, I was speaking at an Intelligent Partnership EIS Forum involving eight EIS fund managers, presenting to a group of about forty wealth manager and IFA groups. During the Q&A session, one participant asked the panel of fund managers whether they believed that the election of Jeremy Corbyn would lead to the end of EIS and VCT tax reliefs. With only one exception, they were unanimous in pouring cold water on this suggestion. Too many jobs would be lost; the UK needed investment in early-stage life sciences, fintech, blockchain technology, AI, and robotics; the creative fulcrum of entrepreneurial Britian would be sacrificed etc. All logical and well-reasoned arguments. Symvan was the exception that day and argued that these schemes would be amongst the first to go for the very simple reason that the Corbyn/McDonnell axis viewed the world through an essentially post-Marxist prism and simply saw such schemes as ‘tax breaks for rich guys.’ The private sector has little or no role in generating economic growth when you remove yourself sufficiently from reality. That intellectual depravity does not exist with the current government, but expediency potentially calls the wolf to the door nonetheless. And so Martin Vander Meyer offers a warning in a worryingly prescient article in this week’s Spectator in which he argues that, although the Chancellor has emphatically denied that she wishes to punish early-stage companies in the UK, she may have to “scrape the bottom of the bin” and punish the sector as the Treasury and the OBR have removed Labour’s delusions about what the costs of its mooted tax rises will mean for the UK economy. If the furious lobbying ahead of Wednesday’s budget has taught us anything, it is that the power of the unions is forcing the Chancellor to make sub-optimal decisions and the UK as a whole will bear the cost. Will entrepreneurial Britain pay the price? #EIS #VCT #The Spectator #Martin Vander Weyer #UK Budget

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Wealth Management: Automated Rebalancing for Model Portfolios Toca's Wealth Management Sector Director Tom Whittle explains why automating Model Rebalancing is a valuable step in mitigating Consumer Duty Fair Value risk and will not only drive efficiency and scalability into your business but create a path to Digital Services. Start building the foundations for needs of the digital native Investor. https://lnkd.in/e_DP97xR #WealthManagement #DFM #DiscretionaryFundManagement #ModelPortfolioServices #MPS #Wealthtech #Regtech #LowCode #Automation

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Mergers of UK investment trusts make sense to build scale and efficiencies which should result in lower fees for investors. This is natural given the performance trends and shift to lower cost index-based products. One “benefit” that you rarely see mentioned during these announcements is that by combining, you can merge away the performance history of underperforming managers. While Alliance Trust has outperformed its benchmark on a 1,3 and 5 year basis on both a NAV and share price basis (including its use of leverage vs an unleveraged benchmark) as of May, Witan has underperformed over the same time periods. Any guess which will be the surviving performance history? Elliot Gulliver-Needham #indexinvesting

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You asked, We Delivered ❗❗ There's ways to do & ways not to do pitch decks. Bizvest UK do it the right way. ✅ Our pitch decks are done by experienced investment professionals, delivering decks that investors actually want to see. Who knows what investors look for more than investors themselves ❓ Want to learn more? Drop me a DM 📩 #investors #pitch #pitchdeck #investment

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Is the UK M&A market resurgence signalling a recovery that will unlock the log jam in private equity and venture capital? Seems like good news for fund managers and startups to me! What are your views? #venturecapital #privateequity #exits #startups #entrepreneurs

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