Octopus Investments launches Titan VCT 5

Octopus has announced the launch of the Octopus Titan VCT 5 plc as the latest addition to its market-leading VCT range. The fund has launched following the success of Octopus Titan VCTs 1 to 4 which have proved very popular with investors over the last four years. Titan 5 aims to raise £30 million to add to the £70 million already in the series.

The fund offers individual investors an opportunity to access potentially higher investment returns through a combination of income tax relief and tax-free capital growth from a portfolio of early stage UK companies. Octopus expects that the fund will invest in 20 to 30 unquoted companies with a typical deal size of between £200,000 and £2 million.

Simon Rogerson, CEO of Octopus, said: "Since we established Octopus over ten years ago, we've worked hard to meet the needs of investors through a broad range of innovative products. With Titan 5 we will be in a position to make investments that have the potential to provide long-term returns as the market recovers and our experienced investment teams back the successful businesses of the future."

The Octopus investment approach is bolstered further by the Octopus Venture Partners, a network of more than 100 highly successful entrepreneurs and business people, who provide support and guidance to the portfolio companies and can also choose to co-invest their own money alongside the Octopus Titan VCTs. This additional expertise gives the Octopus Titan VCTs a strong competitive edge in the marketplace.

Alex Macpherson, head of the Ventures team, which manages the Titan range, added: "As the economy comes out of recession, I believe this is a great time to be investing in entrepreneurial high-growth businesses. While many sources of funding are closed to these companies, as one of the biggest providers of VCT funds in the market, we are well-placed to deliver not only tailored funding solutions to high-growth companies but also give them support and guidance as they grow. We are passionate about providing UK entrepreneurs and their teams with the resources they require to develop beyond the start-up phase."

Last year the market for VCTs grew to around £350 million, over twice the size it was the previous year. Guy Myles, Octopus Managing Director, added: "As many investors experience an increasing tax burden and restrictive pension regulations, VCTs are growing in popularity as a highly tax efficient investment choice. We expect the market this year to be at least as large as last year, if not even greater."

Octopus is recognised as an industry leader in VCTs and the Ventures team was one of the most active investors in private businesses throughout 2010, completing 25 new transactions in 12 months. The company was named 'VCT Manager of the Year' at the British Private Equity Awards in 2010 and has won 'VCT Provider of the Year' for the last four years (Professional Adviser).

"Titan 5 will invest in exceptional businesses that radically transform and dominate industries they operate in," added Alex Macpherson. "We invest across all industry sectors where we believe there is the potential for significant capital growth. For example, Calastone and Zoopla, previous investments made by the Titan funds, have proved that they can significantly change the established norms of the industries they focus on."