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2016/17 OFFER FOR SUBSCRIPTION NOW OPEN

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Elderstreet VCT plc  12 December 2016

Offers for New Ordinary Shares - Fundraising Target £10 million

The Company’s manager, Elderstreet, has reached a significant co-investment agreement with Draper Esprit to share deal flow, management experience, and investment opportunities going forward.  

Draper Esprit is one of the leading venture capital investors involved in the creation, funding and development of high-growth technology businesses with an emphasis on digital technologies. Draper Esprit floated on the AIM market in June 2016 and at the time of writing has a market capitalisation of £144 million.

Draper Esprit funds include EIS and institutional funds. The Draper Esprit EIS Funds 2015 achieved the highest rating by Martin Churchill’s Tax Efficient Review (88/100). 

The Board believe this agreement will bring substantial benefits to both existing and prospective new investors. Whilst there will be no change to the generalist investment policy of the Company, the ability to join a funding syndicate of Draper Esprit funds will bring access to larger deals in companies that enjoy higher revenues and which operate in high growth sectors. 

The Offer enables Investors and existing Shareholders to invest into an established and diversified portfolio, managed by an award winning experienced investment team with a proven track record.  

The Board believes that in a generally low global interest rate environment a tax free yield of between 3 and 4 pence (equivalent to a 6% to 8% tax free return based on the Estimated Offer Price after factoring in initial tax reliefs) represents a good yield and will help to deliver consistent returns in the future.

Coupled with Draper Esprit co-investment, and therefore the possibility of investing in higher revenue businesses which may lead to earlier realisations, the Board believe the upside outweighs any short term potential reduction from historic yields.

 2017/18 Offer remains open until full subscription or closed by the Board.


 

The Company won Investment Week's 2014 VCT Investment Company of the Year Award.

These awards highlight investment companies that produce consistent performance and where there is likely, in the judge's opinion, a high likelihood that the investors will not be disappointed in the future.

Winner of the VCT Fund Manager of the Year 2009 and 2010
(Growth Company Awards)