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Foresight Williams Technology VCT Share Class can add real diversification to VCT portfolios

The Foresight Williams Technology VCT Share Class (FWT VCT) was launched in December 2019 and represents an attractive investment opportunity, made possible by the collaboration of Foresight Group and Williams Advanced Engineering (“WAE”). Foresight Group is an experienced investor into small and medium sized UK companies which has been managing investments on behalf of retail clients for more than 36 years. WAE is a technology and engineering services business originally spun out of the Williams Formula 1 business.

The concept of the collaboration is to bring together the investment expertise of Foresight and the technical capabilities of WAE to deliver better results for investors than would be the case if either company were working individually. Foresight and WAE have been working together since November 2016 when the original Foresight Williams Technology EIS Fund was launched. Since its launch, the FWT EIS fund has invested in over 20 early stage technology companies with high growth potential, deploying over £34m.

We believe there are four compelling reasons why a VCT investor should consider the FWT VCT fund:

  1. The FWT VCT invests into deep-technology businesses across a range of different sectors. Almost all the VCT’s investments will have generated defensible intellectual property (usually via patents), both to capture value and create a source of competitive advantage. This investment approach contrasts with many VCTs in the marketplace which are generalist in nature, but tend to focus on the software, business services, consumer and technology, media and telecommunications sectors. An investment in the FWT VCT will therefore provide exposure to the types of companies not typically present in other VCTs.
  2. The FWT VCT invests into early- stage businesses with high growth potential that are both pre and post-revenue, whereas many generalist VCTs invest into businesses which are typically at a later stage. The FWT fund has a unique advantage investing in companies at this stage as it can leverage the expertise of WAE to understand the technology development and commercialisation risks each company faces.
  3. The FWT VCT is a new VCT and will have a more concentrated portfolio than many of the large, mature VCTs in the market which already have significant existing portfolios but are raising top up funds. This should provide a different return profile to those of more mature VCTs.
  4. The collaboration between Foresight Group and WAE is unique in the VCT marketplace. The strategy of using a technical partner alongside an investment manager in every aspect of the investment process to provide a competitive advantage is different and, we believe, compelling.

FWT VCT is open for subscription now. If you would like to discuss an investment opportunity, please contact our Sales Team on 020 3667 8199 or email sales@foresightgroup.eu.

Tax reliefs are dependent upon an investor’s individual circumstances and are subject to change. Capital at risk.