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Baronsmead Fund Raise

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scotia
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Baronsmead Fund Raise

#253228

Postby scotia » September 23rd, 2019, 10:11 am

I received an email from Computershare this morning concerning a Baronsmead Fund Raise - from which I (partially) quote:-

I would like to update you on some key information about the forthcoming fundraising for Baronsmead Second Venture Trust.
Fundraising Plans
The Board has announced that joint fundraising with Baronsmead Venture Trust plc will be launched in Autumn 2019. We can now confirm that the amount we are aiming to raise is £40m with a £10m over allotment facility in aggregate. I thought it was worthwhile to confirm the following key points to help you, if you are considering participating in this fundraising:
• I cannot yet confirm the exact date of the fundraising launch as it depends to some extent, on the timing of the sign off of the prospectus but we hope that it will be on or close to Thursday 3rd October.
• To ensure equality for all potential investors in the fundraising, the allocation will be based on a “first come, first served” basis across both existing and new shareholders.
• The fundraising will be announced on the Baronsmead website (http://www.baronsmeadvcts.co.uk) and will be emailed to those of you who have signed up to electronic communications.

onslow
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Re: Baronsmead Fund Raise

#253442

Postby onslow » September 23rd, 2019, 10:09 pm

£40m?

Wow.

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Re: Baronsmead Fund Raise

#253489

Postby Tigger » September 24th, 2019, 9:18 am

Also changing its dividend policy as per yesterday's announcement.
https://investegate.co.uk/baronsmead-ve ... 00022978N/

The new guide level of 7% of NAV represents 5.3p rather than 6.5p under the previous policy. Not a huge surprise given recent events and the VCT rule changes.

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Re: Baronsmead Fund Raise

#253754

Postby Karellan » September 25th, 2019, 7:05 am

I had a couple of letters yesterday with this information too. I wonder how the fund raise will go. Could the Baronsmead train be slowing up ?

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Re: Baronsmead Fund Raise

#253765

Postby Vulgaris » September 25th, 2019, 8:55 am

B/mead account for about 25% of my VCT holdings and were consistent good performers for a long time. I think that the proportion of AIM stocks has been a drag over the past year - other pure AIM trusts (e.g. Amati) have fared worse still. Nonetheless I'm not convinced that B/mead have adapted to the new rules yet and am not taken with a move from a cash sum dividend target to one based on a % of NAV (which is subject to the ups and downs of AIM). On that basis I'm give this raise a miss and will anticipate putting into Albion and Northern if and when they raise --- possibly also Mobeus, though they've been much affected by the rule change.

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Re: Baronsmead Fund Raise

#253935

Postby moorfield » September 25th, 2019, 8:55 pm

I bought and have held Baronsmead 2 (BVT) since 2012 and have just looked at XIRR of cashflows to date - totting up the initial purchase, income tax rebate, dividends, and value at current price (72.5p), and projecting forward to Friday to include the next dividend - that comes to 15.0%. I am a little flush with cash this year and looking to reduce a painful tax bill, so may buy another tranche if I'm quick enough.

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Re: Baronsmead Fund Raise

#253950

Postby thebarns » September 25th, 2019, 10:28 pm

I am a shareholder in both Baronsmead Trusts with a reasonable sized holding in Baronsmead 2, initially purchased in 2000 and topped up 2-3 times since then.

The return on the initial 2000 investment has been phenomenal when taking into account the fact I received 60% tax relief at that time as I had a capital gain heldover in addition to the income tax relief.

So it has been a very stable and well run VCT house for many years.

That said, performance has stagnated in more recent years and there has been the recent change in ownership of the managing team.

Fortunately or unfortunately, I have absolutely no income tax to pay this year - the joy or fear of early retirement - so will not need to consider whether they would have received further investment from myself !

scotia
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Re: Baronsmead Fund Raise

#255788

Postby scotia » October 4th, 2019, 9:06 am

email timed at 9:02 this morning - the Baronsmead Offers are now open.
You can apply online, or by email or by post.
I'll think about it - but I'm not rushing as in previous years.

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Re: Baronsmead Fund Raise

#258242

Postby james188 » October 16th, 2019, 3:01 pm

I received a standard form e-mail from Baronsmead's registrars today, confirming that my application had been successful. However, the e-mail also stated that allocations could be scaled back if the offers were oversubscribed. In case others have received a similar e-mail, this is just to say that that statement is incorrect. The offers were clearly stated to be on a first come, first served basis.

I have asked the registrars to amend the acknowledgement pronto. Not impressed.

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Re: Baronsmead Fund Raise

#258252

Postby james188 » October 16th, 2019, 3:43 pm

Update. In the Prospectus T&Cs (as distinct from the Subscription Form, which is silent on the point), Baronsmead do reserve the right to scale back.I assume that they will not do so, but it is simply wrong to say that these offers are on a first come, first served basis and then to introduce this uncertainty, buried away in the small print.I am going to make that point to Baronsmead.

scotia
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Re: Baronsmead Fund Raise

#258258

Postby scotia » October 16th, 2019, 4:05 pm

james188 wrote:Update. In the Prospectus T&Cs (as distinct from the Subscription Form, which is silent on the point), Baronsmead do reserve the right to scale back.I assume that they will not do so, but it is simply wrong to say that these offers are on a first come, first served basis and then to introduce this uncertainty, buried away in the small print.I am going to make that point to Baronsmead.

I wonder if this relates to past stampedes, where completed forms all arrived near-simultaneously. In such a circumstance there would need to be some sort of lottery - or a scaling down. Given recent performance and the change in management, I suspect there will be no stampede this time, and they will be able to close the offer in an orderly fashion when it fills up.
Baronsmead have handled this offer differently from before. To quote Wealth Club:-
Regrettably, we are unable to offer the Baronsmead VCTs.
The VCTs have structured their 2019/2020 fundraising offer in a way that facilitates only direct investment or investment through an adviser. No provision has been made for non-advisory brokers such as Wealth Club.

So there appears to be no way of checking on brokers' web sites to discover what fraction of their offer has been taken up.

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Re: Baronsmead Fund Raise

#258390

Postby shootingstar » October 17th, 2019, 8:58 am

interesting to see that its not available via WealthClub. But I see there is some good info on the ram capital site including tax efficient review report

https://ramcapital.co.uk/portfolio-item ... mead-vcts/

planning to do some research. Does anyone have a firm view on the quality of their offering?

relative to other VCTs, I am somewhat attracted to the quality of the companies they have in their top 10..but not too sure on the personnel involved and recent track record. I know Staffline was an issue for the NAV, I need to check on the performance of other companies they own

scotia
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Re: Baronsmead Fund Raise

#260083

Postby scotia » October 25th, 2019, 10:09 am

So far I have seen no RNS from Baronsmead concerning the fund raise. So it looks like there has been nothing like the purchase stampede of earlier years.

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Re: Baronsmead Fund Raise

#262351

Postby sinterklaas » November 5th, 2019, 5:01 pm

scotia wrote:So far I have seen no RNS from Baronsmead concerning the fund raise. So it looks like there has been nothing like the purchase stampede of earlier years.

I'm informed by IFA friend it's about £17m so far. So you're right.


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