Pembroke VCT Plc New Share Offer
19th November 2015 Pembroke VCT plc New share offer • New B Share offer launched to grant access to Pembroke’s successful strategy of investing in high growth businesses • Will follow sa...read more
Pembroke VCT Plc New Share Offer
19th November 2015
Pembroke VCT plc
New share offer
• New B Share offer launched to grant access to Pembroke’s successful strategy of investing in high growth businesses
• Will follow same proven strategy – current portfolio is valued at 25% above cost
• Pembroke’s strategy will be unaffected by the VCT changes announced in the Summer Budget
Pembroke VCT plc (“the Company” or “Pembroke”) is delighted to announce that it will be building on the strength of its previous successful fundraising by launching a new B Ordinary Share issue of up to £15 million, with an over-allotment facility of up to £10 million. The new B Ordinary Share class offer (the “Offer”) will give investors immediate access to an established portfolio of qualifying companies, including high growth opportunities such as Five Guys, Plenish and Second Home. The Offer will be available in both the 2015/16 and 2016/17 tax years and “Early bird” offers will be available, the last of which will expire on 29th January 2016.
The Offer will give investors the chance to benefit from the significant tax advantages a VCT offers over many other investment products, as well as access to a private equity style strategy, focusing on the consumer and retail segment. The additional investment will allow the Company to grow its existing portfolio and take advantage of its healthy pipeline of deals.
Having completed the largest first-time fundraise for a Generalist VCT since 2006, the Pembroke fund has current net assets of £26.8 million. As at 30 September 2015 the portfolio of 23 investments (combined for Ordinary and B Ordinary Shares) is valued at 25% above cost, resulting in a total NAV of 111.69 pence per share.
Pembroke VCT is managed by Oakley Investment Managers LLP, part of the Oakley Capital group of companies. Established in 2002 by the successful entrepreneur Peter Dubens, Oakley has over €1 billion of assets under management. In addition to strong support from a proven UK investment house, Pembroke’s strategy and management team have been tried and tested, and the objective remains unchanged; to generate significant capital appreciation for investors. This strategy will not be affected by the proposed Summer Budget 2015 changes, and will allow Pembroke to continue to offer strong returns alongside substantial tax benefits.
Peter Dubens, Managing Partner and Co-Founder of Oakley, said today: “We have been very impressed with the growth of the portfolio, and look forward to maximising investor returns through further development of our existing successful investments, and by making the most of our strong pipeline of opportunities. Pembroke VCT is one of only a small number of Generalist VCTs that is able to continue following its stated investment strategy following the proposed July 2015 Budget changes.”
For further information, please contact:
Pembroke VCT plc
+44 20 7766 6900
Peter Dubens / Andrew Wolfson
Kin Capital Limited, Co-promoter to the Offer
0203 743 3100 / 0203 743 3122
Richard Hoskins / Tom Hopkins
+44 20 3727 1000
Edward Bridges / Emily Desmier
About Pembroke VCT:
Pembroke VCT was launched in 2013 to invest in early-stage consumer facing businesses, raising £24 million since its inception. Pembroke is managed by Oakley Investment Managers LLP, part of the Oakley Group; an asset management and financial advisory business led by private equity veteran Peter Dubens. Peter Dubens is the founder and a non-executive director of Pembroke.
About Venture Capital Trust (“VCT”) Regulatory Changes:
A Venture Capital Trust (“VCT”) is a company, similar in nature to an investment trust, which subscribes for shares in, or lends money to, small unquoted companies. A number of tax benefits are available to individuals who invest shares in a VCT. In the July 2015 Summer Budget new conditions were announced that are expected to become effective from Royal Assent in November 2015 (this is subject to State Aid approval from the EU commission).
This introduced a maximum age limit for companies receiving VCT investments (generally seven years from first commercial sale) and a maximum amount of Risk Finance State Aid which a company can receive over its lifetime (£12 million, or £20 million for Knowledge Intensive Companies). There will be further restrictions on the use of VCT funds received by investee companies. However, it is not anticipated that these changes will affect opportunities for investment, or follow-on investments in companies already in the Company’s portfolio. It is also expected that Pembroke VCT’s investment strategy will not be materially affected, as it predominantly focuses on providing development capital to high growth opportunities rather than “management buy-out” transactions and later stage businesses.