Equinox launches hybrid VCT

Equinox VCT plc will combine exposure to the residential property and private equity asset classes through a new vehicle.

Equinox Capital Management has launched a new venture capital trust (VCT), which provides exposure to residential property and private equity.

Equinox VCT plc will be managed by Equinox and is sponsored by London-based stockbrokers Williams de Broë.

The new vehicle will firstly offer investors exposure to the UK residential property market. The VCT will purchase options that return 200 percent of any increase, but not any decrease, in the level of the Halifax House Price Index, according to a press release.

The monies invested in the options will be covered by a fixed return on investment grade UK bank bonds, purchased alongside the options. Abbey National Treasury Services will issue the options and provide the bank bonds.

The balance of the net funds will then be invested in private equity by Equinox. George MacRitchie, formerly of 3i, NatWest Equity Partners and nCoTec Ventures has joined the firm to manage the fund alongside deputy chairman David Pollock and director Ed Simpson.

Commenting on the launch, MacRitchie said: “This is a unique opportunity for investors to gain exposure to two of the UK’s most attractive asset classes combined with the substantial tax benefits offered by VCTs. We believe that this combination differentiates the Equinox VCT from others in a crowded market place.”

London-headquartered Equinox Capital Management offers investment, advisory and financing services to companies, institutional investors and high net worth individuals.