Albion Capital, an independent alternative investment manager from London, has completed an oversubscribed £60 million raise across five of its six venture capital trusts (VCTs).
With this investment, the VC will be able to tap into a pipeline of new UK opportunities and provide further support to high-growth companies within the existing portfolio. With this long-term capital provided by VCTs, startups can evolve and contribute to the broader UK economy, particularly through job creation.
This latest fundraise will allow Albion Capital to provide continued investment to high-growth companies, focusing on B2B technology, healthcare, and deeptech opportunities across the UK.
Before this, in 2023, Albion Capital completed the top-up offers across its six venture capital trusts. The £80 million raised will be deployed in a strong pipeline of exciting new opportunities and to help accelerate growth within the existing portfolio of around 60 businesses.
Why VCT investments?
Earlier this year, Will Fraser-Allen, managing partner of Albion Capital, stated that it is a good time to invest in Venture Capital Trusts (VCTs) due to lower valuations compared to pre-pandemic levels. VCTs have performed better than the wider venture capital industry, with a 28% decrease in cash invested in VCTs in 2023 compared to the previous year, while the wider industry experienced a 46% decline.
Interesting portfolio
This fundraise will also provide further support to promising businesses in its existing VCT portfolio of around 65 companies throughout the UK, that employ over 5,000 people. Many of these companies grew rapidly last year, including Proveca, Egress, and Quantexa, which was the first UK unicorn of 2023.
Will Fraser-Allen, Managing Partner at Albion Capital, said: “Despite the challenging macroeconomic and geopolitical environment, it is encouraging to see that the Albion VCTs’ £60m fundraising target was over-subscribed which is a strong endorsement for the Albion team, and it will provide critical growth capital for the young and innovative businesses we support. There is a substantial opportunity to back the category-leading software and healthcare businesses of the future. VCTs remain an attractive long-term vehicle for investors as they can invest throughout economic cycles; they provide compelling tax benefits and have delivered good long-term performance.”
