BERINGEA LAUNCHES OFFER FOR LANDMARK FUNDRAISE FOR PROVEN VCTS
17 Jan 2019
London, 17 January 2019:Beringea, have launched a Combined Offer for Subscription to raise up to £60m with an over-allotment facility of up to a further £20m. The combined £80m target would represent the largest ever fundraise for the ProVen VCTs.
The ProVen VCTs have been managed since foundation by Beringea, a transatlantic venture capital investor that manages over $700m in funds in the UK and the US. It has a portfolio of over 60 companies across North America and Europe, in a range of growing industries and emerging technologies including retail, software-as-a-service, digital media and artificial intelligence (AI).
The Offer, therefore, will enable investors to subscribe for shares in two VCTs with a track-record of almost two decades of successfully investing in scaling businesses and an established portfolio of growth companies. Recent additions to the ProVen portfolio include AccessPay, a rapidly growing financial technology company, and Aistemos, a leading AI company focused on patent analytics.
The funds raised will enable the ProVen VCTs to further develop this portfolio through harnessing Beringea’s pipeline of investment opportunities in the UK and Europe. Beringea recently launched its Northern office to provide greater access to potential investments in the North of England and Scotland. The office is led by Marc Shirman, former co-head of Muzinich & Co.’s private capital fund.
Beringea sold its stakes in Watchfinder and Chargemaster in 2018, returning close to £40m to the ProVen VCTs and allowing special interim dividends to be declared for the year ending 28 February 2019. Based on these special interim dividends alone, the dividend yields for the year ending 28 February 2019 will be ahead of the target 5 per cent dividend yield.
Based upon data on generalist VCTs compiled by the AIC, which analyses the net asset value total return over a five-year period, ProVen VCT has achieved a net asset value total return of nearly 50 per cent over the period. ProVen Growth & Income has achieved a net asset value total return of nearly 30 per cent over the period.
Stuart Veale, Managing Partner of Beringea, commented: “There is a clear opportunity to tap into the rise of the entrepreneurial economy through investing in VCTs. Beringea and the ProVen VCTs have been investing in scaling, innovative businesses for almost two decades, and therefore have the expertise, experience and network to build on their track-record and deliver further growth.”
The Offer opened on 11 January 2019 and will close on 5 April 2019 in respect of the 2018/2019 Offer and 30 April 2019 in respect of the 2019/2020 Offer, or as soon as the Offer is fully subscribed. The directors of each of the Companies may decide to extend the Offer in respect of their Company at their absolute discretion to a date no later than 10 January 2020.
Existing shareholders in one or more of the ProVen VCTs will benefit from a 2 per cent discount on the amount subscribed for valid applications that form part of the first £5m allotted or received before 15 February 2019 if £5m in valid applications have not been received by this date, while new investors will receive a 1 per cent discount in respect of valid applications received within either the first £5m allotted or received before 15 February 2019 if £5m in valid applications have not been received by this date.
To obtain a copy of the Securities Note, private investors and Financial Advisers should call the Manager, Beringea, on 020 7845 7820. A downloadable version of the Securities Note is available from www.provenvcts.co.uk.