Investment Policy

The Baronsmead VCTs have established portfolios of unquoted, AIM-traded and other companies.

The Investment Policies of the Baronsmead VCTs

The Baronsmead VCTs have established portfolios of unquoted, AIM-traded and other companies.

The Investment Policies of the Baronsmead VCTs

The Company’s investment policy is to invest primarily in a diverse portfolio of UK growth businesses, whether unquoted or traded on AIM, which are substantially based in the UK, although many of these investees may have some trade overseas.

Investments are made selectively across a range of sectors in companies that have the potential to grow and enhance their value and which will diversify the portfolio.

The company will make investments in accordance with the prevailing VCT legislation which places restrictions, inter alia, on the type and age of investee companies as well as the maximum amount of investment that such investee companies may receive.


Baronsmead Venture Trust

Investment securities

BVT invests in a range of securities including, but not limited to, ordinary and preference shares, loan stocks, convertible securities, and permitted non-qualifying investments as well as cash. Unquoted investments are usually structured as a combination of ordinary shares and loan stocks or preference shares, while AIM-traded investments are primarily held in ordinary shares. No single investment may represent more than 15 per cent. (by VCT value) of BVT’s total investments.


Liquidity

Pending investment in VCT qualifying investments, BVT's cash and liquid funds are held in permitted non-qualifying investments.

Investment style

Investments are selected in the expectation that the application of private equity disciplines including active management of the investments will enhance value and enable profits to be realised on the sale of investments.

Co-investment

BVT typically invests alongside BSVT in companies sourced by the Investment Manager.

The Investment Manager’s members and staff invest in unquoted investments alongside BVT. This scheme is in line with current practice of private equity houses and its objective is to attract, recruit, retain and incentivise the Investment Manager’s team and is made on terms which align the interests of shareholders and the Investment Manager.

Borrowing powers

Should it be required BVT’s policy is to use borrowing for short term liquidity purposes only up to a maximum of 25 per cent. of BVT’s gross assets, as permitted by BVT’s articles of association.

No material change will be made to BVT's investment policy without the approval of Shareholders by ordinary resolution at a general meeting.

Baronsmead Second Venture Trust

Investment securities

BSVT invests in a range of securities including, but not limited to, ordinary and preference shares, loan stocks, convertible securities, and permitted non-qualifying investments as well as cash. Unquoted investments are usually structured as a combination of ordinary shares and loan stocks or preference shares, while AIM-traded investments are primarily held in ordinary shares. No single investment may represent more than 15 per cent. (by VCT value) of BSVT’s total investments.

Liquidity

Pending investment in VCT qualifying investments, BSVT's cash and liquid funds are held in permitted non-qualifying investments.

Investment style

Investments are selected in the expectation that the application of private equity disciplines including active management of the investments will enhance value and enable profits to be realised on the sale of investments.

Co-investment

BSVT typically invests alongside BVT in companies sourced by the Investment Manager.

The Investment Manager’s members and staff invest in unquoted investments alongside BSVT. This scheme is in line with current practice of private equity houses and its objective is to attract, recruit, retain and incentivise the Investment Manager’s team and is made on terms which align the interests of shareholders and the Investment Manager.

Borrowing powers

Should it be required BSVT’s policy is to use borrowing for short term liquidity purposes only up to a maximum of 25 per cent. of BSVT’s gross assets, as permitted by BSVT’s articles of association.

No material change will be made to BSVT's investment policy without the approval of Shareholders by ordinary resolution at a general meeting.