About Seneca Growth Capital VCT Plc

Seneca Growth Capital VCT Plc (“the Company”) is a Venture Capital Trust, launched in 2001, which now aims to generate returns from a diverse portfolio of both unquoted and AIM/AQSE quoted growth capital investments. Until 23 August 2018 the Company was called Hygea vct plc.

The Company made an initial allotment of B shares on 23 August 2018, at which point Seneca Partners Limited (“Seneca”) was appointed as the Company’s Investment Manager. Further to the success of the Company’s B Share offers in the last four years, a new offer of B shares was launched on 26 August 2022 to raise, in aggregate, up to £10 million with an over-allotment facility of up to a further £10 million (before issue costs).

As the Company’s Investment Manager, Seneca are responsible for the management of the Company’s B share pool investments, whilst responsibility for the management of the Ordinary share pool investments has been delegated to a member of the Board of Directors who served immediately prior to 23 August 2018, namely John Hustler. The Company continues to manage both share classes in accordance with its investment policy, having expanded the range of qualifying investments in 2018.

Venture Capital Trusts (VCT) give investors the opportunity to share in the growth of some of Britain’s most exciting and entrepreneurial smaller companies. Some companies may be quoted, typically, on the Alternative Investment Market (AIM), which is traditionally where smaller companies would list. Investing in a venture capital trust means you are helping innovative smaller companies to create jobs, prosperity and economic growth. VCTs also give you the opportunity to benefit from tax reliefs.
VCTs are government-backed and are listed on the London Stock Exchange. They were introduced in 1995 to encourage investment in entrepreneurial businesses to help them prosper and, in turn, boost the UK economy. They exist to incentivise investment and to compensate investors for the risks involved in backing early-stage businesses.
You can claim tax reliefs provided you hold your VCT shares for at least five years.
VCTs are now an established part of the investment landscape as government figures have recently confirmed that funds raised in 2020-21 was £668 million.

Risks to Consider

Risks to capital – The value of an investment, and income from it can fall as well as rise. Investors could end up getting back less than they put in.
Tax treatment depends on individual circumstances and may change in the future. Tax reliefs are dependent on the VCT maintaining HMRC approval.
Volatility and Liquidity – VCT shares may go down as well as up. They are less liquid than mainstream investments and therefore may be more difficult to sell. The share prices quoted may not reflect the VCT’s net asset value.

Important Information

You should only rely on the information provided in the Prospectus and relevant Key Information Document when deciding whether to make an investment. Your capital is at risk and you may get back less than you invest. More information

VCTs offer significant tax advantages over most investment products. In summary, the main tax reliefs for Qualifying Investors are:

Income tax relief – investors can claim income tax relief when buying newly issued VCT shares, currently at the rate of 30% on investments of up to £200,000 per tax year. This relief is provided as a tax credit to set against an investors’ total income tax liability. Investors must hold shares in a VCT for at least five years to keep the income tax relief – if sold before then, this benefit is lost.
Capital Gains Tax exemption – there is no capital gains tax on profits from selling VCT shares, no matter how short the holding period provided the VCT maintains its VCT status.
Tax-free Dividends – if a VCT pays dividends, there is no tax to pay and investors will not need to declare them on their tax return.

Income tax relief is only available for set-off against any income tax liability due.

The above is only a very brief summary of the UK tax position of Qualifying Investors in VCTs and is based on the Company’s understanding of current law and practice. The tax treatment of Investors in VCTs will depend on their individual circumstances. Potential Investors are recommended to consult their own appropriate professional adviser as to the taxation consequences of their investing in a VCT.

The Company’s investment objective is to provide shareholders with an attractive income and capital return by investing its funds in a diverse portfolio of both unquoted and AIM/AQSE quoted UK companies.

The Company will target well managed businesses with strong leadership that can demonstrate established and proven concepts, and are seeking an injection of growth capital to support their continued development.

At least the minimum required percentage of the Company’s assets will be invested in Qualifying Investments as required by the VCT Rules, with the remainder held in cash and money market securities.

The VCT was originally established as BioScience VCT in 2001 and subsequently renamed Hygea vct plc in 2006.

On 9 May 2018, the VCT launched an Offer for Subscription to raise up to £10 million of New B Shares of 1 pence each with an over-allotment facility for up to a further £10 million of New B Shares to be managed by Seneca Partners, with the assets and investments of the New B Share pool being separate to those of the existing Ordinary Share pool.

On the 23 August 2018, on the first issue and allotment of New B Shares, the VCT was renamed Seneca Growth Capital VCT Plc and Seneca Partners was formally appointed as Investment Manager and has been permitted to act as the VCT’s Alternative Investment Fund Manager (“AIFM”).

Seneca Partners is responsible for all investment management of the VCT and will make decisions in relation to the B Share Class. The ongoing management of the existing Ordinary Share pool investments has been delegated to the members of the previous Hygea Board.

The Seneca Growth Capital VCT Plc is managed by Seneca Partners Limited.

Seneca is an award-winning specialist SME investment and advisory business. Formed in 2010, and headquartered in the North West of England, the management team have extensive experience across a range of sectors, including private equity, corporate finance, wealth management, accountancy and stockbroking.

Seneca has won “Alternative Finance Provider” and ‘Sub £10 million Deal of the Year’ in respect of its EIS investment in Foodpack Ltd at the North West Business Insider Awards and also received recognition as the “Best EIS Investment Manager ‘One to watch 2018’” at the Growth Investor Awards. In 2019, the Company won “Best New Entrant” at the Tax Efficiency Awards and in 2021 the Company was named by Investment Week the VCT Specialist Investment Company of the Year. Seneca was also shortlisted for six Growth Investor Awards, including “Exit of the Year” and “Best VCT Investment Manager” for 2021. In 2022, Seneca was shortlisted by the North West Business Insider Awards for the “Private Equity/ Venture Capital Team of the Year”.

As at 30 June 2023, Seneca managed over £170 million of equity in addition to £73 million of exits, including circa £130 million of growth capital, the majority of which has come from investors who access Seneca’s investment opportunities through their financial adviser or wealth manager. To date, more than 650 financial advisers and wealth managers have arranged investments for their clients through Seneca.

Seneca is also the founding member of a similarly branded network of companies which includes Seneca Finance Limited, a property bridging finance provider with a loan book of more than £25 million (as at 30 June 2023) and Seneca Property Investments Limited which currently manages around £80 million of property assets (as at 30 June 2023). This wider Seneca branded network of companies operates across the North of England and employs more than 50 people.

As a result of this extended network Seneca enjoys strong deal flow and anticipates that the B Share Class will benefit from access to its existing pipeline of growth capital investment opportunities.

Visit the Seneca Partners website

The Board

The Board comprises three non-executive Directors, two of whom are independent of the Manager. Although the management of the Company and the investment decisions in relation to the B Share portfolio will be delegated to the Manager and the Manager will act as the Alternative Investment Fund Manager, the Directors retain overall responsibility for the Company’s affairs.

About

What is a VCT?

Why Invest

Risks and Important Information

Tax Advantages

Investment Objective

History of the VCT

The Investment Manager

The Board

Contact Us

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About

What is a VCT?

Why Invest

Risks and Important Information

Tax Advantages

Investment Objective

History of the VCT

The Investment Manager

The Board

Online form

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