SENECA LAUNCHES ITS NEW VCT OFFERING
Seneca Partners, the SME specialist with a focus on helping companies to grow, has now officially launched its new VCT offering; Seneca has partnered with existing Hygea vct plc and is launching a New B Share class. The New B Share class will be managed by Seneca and will complement its existing tax efficient range which includes EIS and IHT offerings with total AUM of more than £75 million. The launch of its VCT offering means that Seneca Partners now offers a full spectrum tax efficient product range.
Seneca Partners is well positioned to enter the VCT sector – the independent, investment management and corporate advisory business focused on the Northern Powerhouse, is building on the strength of its existing EIS business, which invests in the UK’s growing businesses and since 2012 has completed more than 70 growth capital investment rounds across over 30 companies.
Hygea vct plc (which will be renamed as the Seneca Growth Capital VCT plc upon the first allotment of New B shares, expected in June) is aiming to raise £10m in its first year which is intended to be invested in a portfolio of seven to ten initial investments.
The Seneca Growth Capital VCT will have a generalist investment strategy, which will benefit from Seneca Partners’ expertise in the growth capital sector. The investment team is focused on both private and AIM quoted businesses which benefit from strong management teams, robust business models, attractive growth prospects and an expectation of delivering a profitable and timely investment exit.
One significant structural advantage of partnering with an existing VCT is that whilst the New B Share class will be completely separate from the existing VCT’s residual investments, it will benefit from the VCT’s existing distributable reserves, which makes it possible to pay dividends on the New B Shares from the first year. Partnering with Hygea has also allowed Seneca Partners to bring its VCT to market more quickly.
Richard Manley, CEO of Seneca Partners comments; “In the current landscape of pension reform and record levels of investment in the VCT sector, it is timely for Seneca Partners to launch our VCT offering which allows us to provide another tax efficient access point for investors seeking exposure to our growth capital investment expertise. The recent legislative changes, including those brought about by the Patient Capital Review, make Seneca Partners’ proven experience in growth capital investing even more relevant than ever before.”
Importantly, Seneca Partners directors and senior management team will be investing in the New B Share class and costs to be borne by the New B share class are capped, with Seneca Partners also taking on the launch costs.
Please call Zoe Powell on 020 7071 3920 if you would like to speak to Richard Manley, CEO Seneca Partners
Notes to Editors
Seneca Partners is an award-winning specialist SME investment and advisory business. Formed in 2010, and headquartered in the North West of England, the management team have extensive experience across a range of sectors, including private equity, corporate finance, wealth management, accountancy and stockbroking. Seneca won “Alternative Finance Provider” in both 2016 and 2017 at the North West Business Insider Awards
Seneca Partners is also the founding member of the Seneca branded network of companies which includes Seneca Investment Managers, a Liverpool based fund manager with more than £500 million under management (as at 31 March 2018), Seneca Finance Limited, a property bridging finance provider with a loan book of more than £20 million (as at 31 March 2018) and Seneca Property Limited who originated more than £25 million of property acquisitions in the 12 months to 31 March 2018.
This wider Seneca branded network of companies operates from 5 offices across the North of England and employs more than 60 people.