Keydata is to close its AIM VCT 2 three weeks early, following changes announced in the 2007 Budget....
Keydata is to close its AIM VCT 2 three weeks early, following changes announced in the 2007 Budget.
The group said the recent changes to VCT rules where companies can receive no more than £2m from VCTs and may only invest in companies with 50 or fewer employees will have a detrimental effect on the VCT market.
Keydata has raised just £3.1m of a targeted £15m but expects the shortfall in demand to increase marginally to £5m before the vehicle closes.
The terms of the offer remain unchanged and the investment strategy of the management team, headed up by Giles Hargreave, is unaffected by the decision to wind-up the vehicle earlier.
Mark Owen, sales director, Keydata said: “We have not taken as much as we hoped but I believe the commentary has killed the market this year. Intermediaries are not keen to recommend VCTs to their clients, following the bad press.”