Seeking to raise £30m, Puma VCT 10 will adopt the same, proven asset-backed investment strategy as the previous Puma VCTs, primarily investing in established businesses in the form of senior secured loans.
Puma Investments’ principal focus is on capital preservation whilst seeking to produce regular, tax-free distributions to Shareholders from a portfolio of businesses with substantial asset backing, including in the form of real estate, stock and contracted receivables. Puma VCT 10 will target a regular dividend payout of 6 pence per annum the first such payment being made in April 2016.
Commenting, David Kaye, CEO of Puma Investments, said: “Our asset-backed investment strategy has proven to be popular among investors seeking capital preservation in a tax-efficient wrapper as VCTs are increasingly seen as an alternative to pensions. Investors in Puma VCT 10 will benefit from the successful track record of the Puma Investments team and an extremely strong deal flow. We will be looking to build on both of these with the launch of Puma EIS, thus giving investors access to our strategy in a range of tax-advantaged wrappers.”
VCTs offer individuals 30% upfront tax relief on investments of up to £200,000 a year, as well as tax-free dividends and capital gains. Applications for shares in Puma VCT 10 received before 3 January 2014, will receive a 1% enhancement in additional shares. As with all Puma VCTs, which are limited life, planned exit vehicles, the directors have the ability to convene an extraordinary general meeting after the fifth anniversary of the fund for the shareholders to vote on entering into solvent liquidation. Puma Investments believes this to be the most efficient route to return capital to shareholders and avoids them having to sell their shares on the secondary market.
Puma VCT 10 – key information:
Minimum investment £5,000
Maximum investment £200,000
Offer price 100p
Annual management charge 2%
Initial costs 3%
Initial closing date 5 April 2014
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