Description

British Smaller Companies VCT plc functions as a venture capital trust, directing its capital across the entire business development cycle. It provides funding for companies from their initial and mid-stage growth phases through to later-stage expansion, covering recapitalizations, financing for capital-intensive enterprises, acquisition support, and general business enhancement. This includes investments in mature companies, those qualifying or non-qualifying under VCT regulations, and both privately held entities and those listed on alternative exchanges such as AIM and ISDX. As an evergreen fund, it maintains a continuous investment approach. Its focus sectors are broad, encompassing business services, manufacturing, industrial, healthcare, software, information technology, telecommunications, retail, and consumer brands. The fund also allocates resources to businesses pursuing initial public offerings and those engaged in emerging technologies, with a primary geographic focus on the United Kingdom. Typically, individual investments range from £1 million to £10 million (approximately $1.45 million to $14.48 million) in companies generating annual sales between £5 million and £25 million (roughly $7.24 million to $36.21 million). For development capital specific investments, the range is between £0.25 million and £1 million (around $0.36 million to $1.45 million). Investment vehicles can also include preference shares and various types of loan stock. On average, the fund retains its portfolio investments for a duration of seven years.