Rodney Appiah, Director at Foresight, spoke with Annabel Brodie-Smith, Commercial Director at the Association of Investment Companies, about the benefits and risks of investing in VCTs.
VCTs are investment companies that are listed on the London Stock Exchange which invest in small UK companies with high potential for growth.
The type of companies that VCTs invest in are privately owned or trading on the AIM (Alternative Investment Market). They are innovative, bringing new and disruptive technologies or products to market.
Investment decisions on VCTs are made on the advice of regulated fund managers whose role it is to find companies that have potential for growth.
Rodney joined Foresight in 2016 from the Business Growth Fund where he spent 5 years providing minority growth capital and board support to UK SMEs. Prior to BGF, Rodney was an investment banker at Merrill Lynch, advising PE sponsors and TMT corporates on leveraged finance transactions and M&A activity.
Rodney cites exposure to a diversified portfolio of companies and the opportunity to support entrepreneurship as some of the key benefits of investing in VCTs. He also notes that investing in early stage businesses is a high-risk endeavour and there is the possibility that you won’t get your money back.
This post has been produced by Foresight Capital LLP, which is authorised by the Financial Conduct Authority. Capital is at risk. The value of an investment can fall as well as rise. Investments in smaller unquoted companies are higher risk than investments in larger quoted companies. Investors may not get back the full amount they invest.
Past performance is not a reliable indicator of future results.
We recommend investors seek professional advice before deciding to invest. Foresight is not able to offer investment advice.