Quality is paramount

vcts

Despite the generous tax break on VCTs investors should only buy into these if they are a good investment and suited to their investment profile

Many VCTs are basically vehicles for investing in private equity. They will therefore be judged ultimately by the quality of their private equity management and their performance. The asset class is risky and illiquid so the returns have to be good. The investment performances of different managers vary considerably so care needs to be taken when choosing: only the best should be used. Put VCTs into their proper context. Private equity is a broad asset class which raised $150bn of new money worldwide last year alone. It covers everything from start-up venture situations like Google in the...