Gartmore Fund Management has decided not to proceed with plans to launch Premier VCT, a new venture capital trust after investor demand for the vehicle proved poor.
Premier had a minimum target of £3m, but decided to abort fundraising after commitments received did not exceed £850,000. These contributions will now be returned to investors.
Gartmore’s disappointment highlights the difficulties facing new VCTs that are trying to establish themselves in what remains a distinctly lacklustre environment. Other VCTs are thought to be having a difficult time signing up investors as well.
Stephen Grant, who heads up fledgling venture capital trust ISIS Technology, agreed that the market environment was far from ideal at present. Fundraising for the trust, which also requires a minimum £3m to start investing, is ongoing. “We remain open for business”, said Grant, who declined to make any further comment as to the trust’s prospects.
VCTs are predominantly aimed at private investors looking for access to early stage investment opportunities combined with tax-related investment incentives.