NVT and N2VCT

NVT and N2VCT .

10 January 2013

Northern Venture Trust and Northern 2 VCT launch linked top-up share issue to raise up to £8 million

  • Income – over 9% target tax-free dividend yield
  • Paying consistent annual tax-free dividends
  • The manager: NVM Private Equity has over 28 years’ experience
  • Mature and diverse portfolio of private equity investments
  • Award winning Venture Capital Trusts (‘VCTs’)
  • 30% income tax relief available on subscriptions
  • Investors have the option to invest in either or both funds

Northern Venture Trust and Northern 2 VCT – Venture Capital Trusts managed by NVM Private Equity – announce the launch of a linked top-up offer for subscription to raise up to £4 million for each fund. Northern Venture Trust was launched 17 years ago and has net assets of £63 million. Northern 2 VCT was established 13 years ago and has net assets of £57 million. Of over 100 VCT share classifications listed on the London Stock Exchange, both funds rank in the top 12 in terms of Total Return since inception (Source: The Association of Investment Companies).

Tim Levett, Chairman of NVM Private Equity:
“Northern Venture Trust and Northern 2 VCT are both established funds, each holding 40 investments in a range of different sectors, most of which are common to both funds. This means that investors will immediately gain exposure to a mature and diverse portfolio of smaller UK companies with high growth potential. Each fund has paid annual dividends at or above its current target level for the last eight years – this represents a tax-free yield of over 9% per year on the issue price, equivalent to gross yields of over 12.5% for 40% taxpayers and over 13.5% for 45% taxpayers.”

Northern Venture Trust and Northern 2 VCT have each established a targeted minimum level of annual dividend (6.0p and 5.5p per share respectively), with the objective of enabling investors to benefit from a strong and consistent flow of tax-free income whilst maintaining the funds’ net asset value per share in the medium term.

NVM Private Equity has over 28 years’ experience of investing in unquoted UK businesses and currently has over £200 million under management. The new top-up offer will provide additional funds for investment into small-to-medium sized businesses with high growth potential. The 11 strong NVM investment team has completed 13 deals across the portfolio in the last 13 months, including new investments, strategic portfolio acquisitions and realisations. Over £25 million of new investment was injected into growing UK businesses: Haystack Dryers, Intuitive, Lineup Systems, Silverwing and Volumatic. Meanwhile CloserStill and Paladin Group were successfully sold in the same period – delivering returns of 3.2 and 2.3 times money on NVM’s original investments. Tim Levett adds: “We believe that investment prospects and deal flow are currently strong and we are seeing real benefit as a result of the reluctance of banks to lend to small companies.”

In order to provide existing shareholders with the opportunity to realise value, Northern Venture Trust and Northern 2 VCT have also announced that in the future they will buy back their shares in the market at a 10% discount to the latest published net asset value, subject to certain conditions.

Northern Venture Trust won the Best Venture Capital Trust award in the What Investment Investment Trust Awards 2012. Northern Venture Trust and Northern 2 VCT (together with Northern 3 VCT) won “VCT of the Year” at the Investment Week Investment Company of the Year Awards 2012.

The Northern Venture Trust and Northern 2 VCT share offer is promoted by VCT marketing specialists Downing LLP, who have been working with NVM in this role since 1999.

The key points of the offer are as follows:

  • Funds sought: up to £8 million (£4 million for each fund – before expenses)
  • Offer price per share: Northern Venture Trust – 91.4p Northern 2 VCT – 82.1p
  • 30% income tax relief on subscriptions: up to £200,000 in 2012/13 and 2013/14 tax years
  • Minimum investment: £5,000 in total
  • Closing dates: 5 April 2013 (for 2012/13 tax year) and 15 April 2013 (for 2013/14 tax year), unless fully subscribed earlier

Notes to editors

Further information about NVM’s funds (including Offer Document and application form) is available from the NVM website at www.nvm.co.uk/vctoffer

Northern Venture Trust

Northern 2 VCT

NVM Private Equity Limited (NVM)
is independently owned with over 28 years’ experience of investing in unquoted UK businesses. NVM is a generalist investor, managing over £220m of funds, and is differentiated by having executives living and working in regional business communities throughout the UK. NVM seeks investment opportunities in UK businesses which have the right mix of growth potential and market vision. They may be looking to grow organically, acquire another business or secure a management buy-out. Typically, NVM looks to invest between £2m and £10m in each transaction. www.nvm.co.uk

For further information please contact: NVM

Natalie Dickinson

PR & Marketing Natalie Dickinson