Puma Investments has opened a new £50 million fundraise for Puma VCT 13, with an over-allotment facility for a further £20 million. The fundraise offers an opportunity for investors to gain exposure to a diversified portfolio of scale-up, high potential businesses with the aim of providing attractive but stable returns.
Launched in 2017, the Puma VCT 13 has a five-year track record and according to MICAP analysis is the best-performing generalist VCT in the market on a four-year basis (as at July 2023), with a Total Return (NAV growth plus dividends paid) growth of over 60%1 and assets of more than £100 million.
The value of the VCT’s combined NAV and Dividends as of 30 June of the preceding five years was: 97.00p in 2018, 89.38p in 2019, 100.33p in 2020, 125.77p in 2021, 154.53p in 2022, and 149.55p in 2023.
To date, Puma VCT 13 has invested into 18 UK qualifying businesses. These include piracy software company MUSO, men’s athleisurewear business Ron Dorff and tech focused influencer-marketing agency Influencer, which works with clients including Google, Amazon and Levi’s. In addition, the VCT has invested in several new companies in recent months including Pockit, the digital account provider for under-served customers and voice isolation specialist IRIS Audio Technologies.
Puma VCT 13 has achieved two sizeable exits in recent years. Pure Cremation, a leading provider of direct cremations in the UK exited in June 2021 and Tictrac, an app-based health and wellness solution for employers and insurance companies exited in May 2022, both delivering impressive gains to investors.
Puma invests in high potential companies that have proven themselves in their market, diversifying across sector, business model and end customer group. It works in partnership with portfolio companies to help them achieve their growth ambitions.
Rupert West, Managing Director of Puma Private Equity, the division of Puma Investments responsible for deploying funds raised by Puma VCTs, comments:
“As we navigate the challenging economic environment, our active approach is resonating with management teams more strongly than ever. This strategy has enabled us to support the growth of our existing companies and we have secured a number of new investment opportunities into exciting scale-up businesses at compelling valuations.
“This has meant we’ve deployed funds at pace, and we are delighted to be reopening Puma VCT 13 for further fundraising so more investors can access our diversified portfolio.”
David Kaye, CEO of Puma Investments, comments:
“VCTs provide a good investment opportunity for investors that want to access private markets with the additional bonus of accessing potential tax reliefs while looking beyond the traditional 60:40 portfolio to diversify their portfolios. Although the scrapping of the lifetime allowance meant more could be invested into a pension, there has been a reduction in the annual CGT exemptions as well as dividend allowances, making investing outside tax wrappers less attractive.
“VCTs provide essential capital for companies looking to scale their businesses, which is crucial for the UK economy in creating jobs and supporting growth.”
As with all VCT investments, investors in Puma VCT 13 can benefit from2:
- Upfront 30% income tax relief available to UK taxpayers on an investment of up to £200,000 per tax year
- 100% tax-free dividends
- 100% tax-free capital gains on the sale of Company shares
Puma VCT 13 paid its first dividend in December 2021, its second in March 2022 and its third in December 2022, together totalling 16.5p. It seeks to generate dividends for investors through realising investments in qualifying portfolio companies.
1 MICAP VCT 4-year Performance Table – 31/7/23. Investments need to be held for at least 5 years to qualify for income tax relief. Tax reliefs are not guaranteed and depend on the individual investor’s circumstances and may be subject to change.
2 Investments need to be held for at least 5 years to qualify for income tax relief. Tax reliefs are not guaranteed and depend on the individual investor’s circumstances and may be subject to change.