UK's Hargreave Hale To Raise £20 Million For Equity Trusts

Sandra Kilhof

5 November 2013

Investment manager has launched a £20 million ($31.94 million) fundraise for its AIM VCT range in the hope to raise £10 million of new ordinary shares in both Hargreave Hale AIM VCT 1 and Hargreave Hale AIM VCT 2.

Launched in 2004, the trusts, which are co-managed by Giles Hargreave and Oliver Bedford, offer access to a diversified portfolio of equity investments in small UK-based companies which are primarily traded on the Alternative Investment Market. The VCTs target a tax free income of 5 per cent of the year end NAV, and offer investors an upfront tax relief of 30 per cent, providing shares are held for at least five years.

“AIM offers much more than 'frontier investing', it is also home to numerous established and more traditional businesses such as Abcam, Advanced Computer Software and Vertu. Our VCTs offer investors not only the associated tax benefits, but an exciting opportunity to participate in growth stories and support entrepreneurial development over the medium to longer term,” said Oliver Bedford.

To maintain the VCT’s exposure to small companies, up to 75 per cent of the net proceeds of funds raised may be invested into the Marlborough Special Situations Fund pending investment into qualifying companies.

Hargreave Hale provides discretionary investment management and stockbroking services to private clients, intermediaries, corporates, charities and trusts, totalling £2.7 billion under management.