A Manchester-based venture capital investor and small business lender is to raise £10m by floating a new fund on the London Stock Exchange.
Praetura has launched venture capital trust Praetura Growth VCT plc as it expands its suite of tax-efficient offerings to investors.
The fund will primarily focus on investing in companies based in the North of England.
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The directors of the VCT and people associated to Praetura have already collectively committed to investing £1.02m to the raise.
They also have the option to use an over-allotment facility that will allow the company to raise a further £10m.
The Praetura Group has been supporting small and medium enterprises since 2011, raising capital and investing in the early stages of business lifecycles.
The group currently has assets under management of over £544m, which includes Praetura Ventures with current assets under management of £213m.
Coinciding with the launch, the group has established a new division to house its range of alternative retail investment offerings, Praetura Investments.
Praetura has also appointed Sam McArthur, who was Puma Investments COO of eight years, as a partner.
He said: "The demand for alternative investments is growing significantly. Investors are looking for solutions to diversify their portfolio and deliver strong returns, especially at a time where inflation is continuing to rise and volatility in the stock market, which affects index funds.
"Praetura’s reputation for providing ‘more than money’, combined with the team’s knowledge of the North and passion for backing exceptional businesses outside of London, offers investors a way to do that.
"These are factors that encouraged me to join Praetura in the first place, and I’m looking forward to seeing how far we can take our VCT.
"I believe there’s also a greater awareness of VCTs now and the tax efficiencies they can provide investors, as well as ISAs and pensions.
"There’s even been a noticeable widening of demographics in terms of the sorts of people who are investing and seeking alternative investment solutions.
"There are multiple reasons for this, including more financial advisers advocating VCTs to their clients and a rise in the number of highly innovative start-ups in the UK in sectors such as tech and health.
"Unlike VCTs, pensions and ISAs rarely give investors access to these unquoted companies, which is why VCTs lend themselves to investors wanting to diversify into private markets."
Praetura's portfolio includes the likes of Modern Milkman, Peak, PixelMax, Sorted, Seatfrog and XR Games.
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