Foresight Infrastructure VCT Shares

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Foresight VCT and Foresight 2 VCT Infrastructure Shares

Foresight Infrastructure VCT Shares offers a compelling opportunity for individuals looking for the potential to generate attractive investment returns, through a combination of income tax relief and tax-free capital growth from a portfolio of lower risk, high yielding Infrastructure assets.

Offer Background: Market Opportunity

Investing in infrastructure has become accepted by many pension funds and other institutional investors as a recognised part of their portfolio, offering diversification away from the traditional mix of equities, bonds and real estate. To help make this sector more accessible to private investors, we are pleased to introduce a joint offer for subscription to raise, in aggregate, up to £30 million in a new class of VCT shares; Infrastructure Shares. This offer provides an opportunity, both for Existing Foresight 1 and Foresight 2 Shareholders and New Investors, to benefit from the anticipated combination of recurring income, capital growth and potentially lower risk than traditional VCTs, in addition to the attractive tax benefits of a VCT.

Investment Strategy Overview

Investing in infrastructure is expected to achieve an appealing combination of:

• stable and predictable cashflows;

• low correlation to economic, business and market cycles; and

• relatively low default rates.

It is intended that the Infrastructure Shares fund invests in companies which own and operate essential assets and services. The investments are expected to involve long-term contracts with strong counter-parties, Governmental concessions or other characteristics offering long-term stability. This may include the delivery of infrastructure between the public and private sectors through Private Finance Initiative (“PFI”) contracts. Some infrastructure assets do not meet VCT qualification criteria, while Foresight Group has identified a range of opportunities which it expects to be qualifying including street-lighting, waste recycling and photovoltaic solar systems.

Investing in infrastructure has the potential to deliver recurring levels of income, often in the region of 8.0% to 12.0% (assuming high level of gearing which is common in this sector), which can be delivered tax-free to qualifying investors in VCTs. VCTs offer attractive tax reliefs to qualifying investors, including up to 30% income tax relief on investment and tax-free distributions (subject to annual investment limits and qualifying holding periods).

Key Differentiator and Competitive Advantage

Foresight Group has significant experience investing in infrastructure assets and in VCTs. Foresight has managed VCTs for over twelve years and its infrastructure investment team has invested in infrastructure projects with a total transaction value of £250 million on behalf of private investors, family offices and institutional investors.

Key Features

* Planned Exit VCT with individual roll-over option to remain in the Fund as a longer-term investor

* Targeting minimum 5p per share of tax-free dividend income per annum from year 2

* £1.30 minimum targeted total tax-free return after 5 years

* Dedicated experienced in-house infrastructure team

* Low cost, lower risk VCT shares*

* Liquidity – zero discount buyback policy for first 5 years

* Full VCT tax benefits including:

* 30% income tax-relief on investment and tax-free capital growth**

* tax-free dividend income

* tax-free capital growth

* Lower risk – the infrastructure assets that Foresight will be targeting are operational, generating revenues based on long-term contracts with Governmental or Blue-Chip counterparties

** The 30% income tax-relief on investment applies to all UK taxpayers on the amount subscribed up to £200,000 in any one tax year. The relief is retained provided that shares in a VCT are held for 5 years, subject to the VCTs retaining their status.

To download the Investor Guide click here (PDF 1MB)

To download a Prospectus and Application Form click here (PDF, 1.2MB)

To download the Supplementary Prospectus click here



Stock Exchange Announcements

You can access the latest London Stock Exchange announcements for Foresight VCT and Foresight 2 VCT Infrastructure Shares here.

Should you wish to discuss this investment opportunity further, please contact us on
01732 471812.