Editors November 2020 Martin Churchill Hugh Rogers
Tax Efficient Review
Issue No: 411 Product: Maven Income and Growth VCT and Maven Income and Growth VCT 5 Tax Status: Venture Capital Trusts Fund Group: Maven Capital Partners
Reprinted for the use of Maven Capital Partners Tax Efficient Review reviews are completely independent and providers do not pay for a review Providers who wish to distribute their review as part of their marketing can do so for a standard fee
This communication is provided for informational purposes only. This information does not constitute advice on investments within the meaning of Article 53 of the Financial Services and Markets Act (Regulated Activities) Order 2001. Should investment advice be required this should be sought from a FCA authorised person
www.taxefficientreview.com Maven Income and Growth VCT and Maven Income and Growth VCT 5
EIS RISK WARNINGS RISK WARNINGS AND DISCLAIMERS This communication is provided for informational purposes only. This information does not constitute advice on investments within the meaning of Article 53 of the Financial Services and Markets Act (Regulated Activities) Order 2001. Should investment advice be required this should be sought from a FCA authorised person. The information and opinions expressed and contained in Tax Efficient Review (“TER”) are proprietary to TER and are not intended to represent investment advice or recommendation to buy or sell any security. TER is not responsible for any damages or losses arising from any use of this information. GENERAL RISK WARNINGS Your attention is drawn to the following risk warnings which identify some of the risks associated with the investments which are mentioned in the Review: Fluctuations in Value The value of investments and the income from them can go down as well as up and you may not get back the amount of‑Investments invested. Suitability The investments may not be suitable for all investors and you should only invest if you understand the nature of and risks inherent in such investments and, if in doubt, you should seek professional advice before effecting any such investment.
Past performance Past performance is not a guide to future performance. Legislation Changes in legislation may adversely affect the value of the investments. Taxation The levels and the bases of the reliefs from taxation may change in the future. You should seek your own professional advice on the taxation consequences of any investment.
ADDITIONAL RISK WARNINGS Enterprise Investment Schemes 1. EIS companies are unquoted 2. The value of EIS Shares can fluctuate and Investors may not get back their investment; 3. There is no market for EIS Shares and Shareholders may not be able to realise their shareholding unless the EIS company is sold or floated on a recognised Stock Exchange. Dividends may not be paid. 4. Potential Investors should consider that past performance of the EIS Manager is no indication of future performance and there can be no guarantees that the EIS Company will meet its objectives. 5. Investment in unquoted companies can offer good investment returns, but, by its uncertain nature involves a much higher degree of risk than investment in a quoted portfolio. 6. Whilst it is the intention of the EIS Directors that the EIS company will be managed so as to qualify as an EIS, there can be no guarantee that it will maintain such status. A failure to qualify could result in the Company losing the tax reliefs previously obtained, resulting in adverse tax consequences for Investors, including a requirement to repay the 30 per cent. income tax relief. 7. Levels and bases of, and relief from, taxation are subject to change. Such changes could be retrospective. 8. A company can raise no more than £5m in any 12 month period after 5 April 2012 from any or all of the Enterprise Investment Scheme, the Corporate Venturing Scheme and Venture Capital Trusts. 9. The 2015 Finance No2 Act made the following changes: - The ‘age limit’ of an investee company must be less than seven years (but ten years for ‘knowledge intensive’ companies) - The ‘lifetime limit’ of tax advantaged funds that an investee company can receive is £12 million (but £20 million for ‘knowledge intensive companies) - Since 6 April 2012 it has not been possible to fund management buyout (MBO) transactions using EIS money or VCT funds raised after that date. That rule also affects buy and build strategies and EIS money cannot be used to acquire shares in another company or the trade of another company (including goodwill and other intangibles). 10. Autumn Statement 2017 - from Royal Assent of Finance Bill 2017-18, a principles-based test will be introduced into the tax-advantaged venture capital schemes area. Tax-motivated investments, where the tax relief provides all or most of the return for an investor with limited risk to the original investment (i.e. preserving an investors’ capital) will no longer be eligible. The new test will ensure that the schemes are focused towards investment in companies seeking investment for their long-term growth and development. The new test will not affect independent, entrepreneurial companies seeking to expand. Anew ‘risk to capital’ condition depends on taking a ‘reasonable’ view as to whether an investment has been structured to provide a low risk return for investors. The condition has two parts: whether the company has objectives to grow and develop over the long-term (which mirrors an existing test with the schemes); and whether there is a significant risk that there could be a loss of capital to the investor of an amount greater than the net return
Tax Efficient Review is published by Copyright ©2020 Tax Efficient Review Ltd. All Rights Reserved. The information, data and opinions expressed and contained Tax Efficient Review Ltd herein: (1) are proprietary to Tax Efficient Review Ltd and/or its content providers and are not intended to represent investment advice or recommendation to buy or sell any security; (2) may not normally be copied or distributed without express license 35 The Park to do so; and (3) are not warranted to be accurate, complete or timely. Tax Efficient Review Ltd reserves its rights to charge for London access to these reports. Tax Efficient Review Ltd is not responsible for any damages or losses arising from any use of the reports or NW11 7ST the Information contained therein. The copyright in this publication belongs to Martin Churchill, all rights reserved, and for a Tel: +44 (0)20 8458 9003 fee the author has granted Maven Capital Partners an unlimited non-exclusive and royalty free licence to use the publication 2 Reprinted for the use of Maven Capital Partners Maven Income and Growth VCT and Maven Income and Growth VCT 5
Top-up Offers for Maven Income and Growth VCT (Maven Offer Name VCT 1) and Maven Income and Growth VCT 5 (Maven VCT 5)
Fund Manager Maven Capital Partners
VCT Type Generalist with track record
Maven Income and Growth VCT £41m Fund Size Maven Income and Growth VCT 5 £44m
Initial Cost 2.5%
Annual Cost Complex, see Table 4
£5,000 per applicant (as well as a minimum £1,000 per Minimum Investment VCT if investing in both VCTs)
Registrar Link Market Services
30 March 2021 for 2020/2021 tax year, 30 April 2021 for Closing Dates 2021/2022 tax year or when fully subscribed.
Table 1: Offer Pros & Cons PROS CONS Maven has a record of completing a range of Maven’s performance track record over 3, 5 & investment types, including VCT qualifying 10 years puts them slightly below the median private and AIM quoted companies, as well as level compared to their peers raising funds this MBOs and other private investments for non- tax year VCT clients Maven VCT portfolios feature growth Buyback policy of the Maven VCT 5 (at 10% businesses that benefit from contracted to 15%) lags the major Generalist VCT players recurring revenues, and are active in defensive who are moving to a 5% discount sectors such as software, cyber security, data analytics, training, healthcare and funeral services, which are generally less directly consumer dependent. The manager has a UK-wide team with UK The uninvested funds from exits and previous wide office network and a strong regional fund raisings total nearly £22m as at 31 August presence, and has achieved a strong flow of raising questions over the need for further recent private company transactions fund raising at this time .
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Disclaimer This communication is provided for informational purposes only. This information does not constitute advice on investments within the meaning of Article 53 of the Financial Services and Markets Act (Regulated Activities) Order 2001. Should investment advice be required this should be sought from an FCA authorised person.
Changes since last review Since the last TER review of the Maven VCT offers, Maven has exited from a number of private company investments including ITS Technology (in December 2019) and Symphonic Software (in November 2020), representing the first realisations from the early stage portfolio. In the case of ITS Technology, the exit was pursued prematurely due to a change in the ‘Risk to Capital’ aspect of the VCT legislation, where following the initial investment fibre broadband was deemed to have security value. The ITS exit is interesting because it highlights the difficulties that VCTs might encounter when early stage investing because of the restrictions inherent in the VCT rules concerning the purpose of investment and size of investee company.
The initial ITS Technology investment completed in June 2017 and within a relatively short space of time it became apparent that, in order to achieve commercial scale, the business would require an investor that was not constrained by the VCT rules. As a result, a specialist corporate finance adviser was appointed in early 2019, to lead a process to help secure a sale of the business and identify an investor who could support its long-term funding requirements. The exit completed in May 2020 through a sale to Aviva Investors, the global asset management business of Aviva, which has committed £45 million to support the roll-out of the full fibre broadband network across the country. The exit generated a total return slightly in excess of cost over the holding period.
The investment in Symphonic Software only completed in early 2019, and the Maven VCTS have quickly realised their investment through a sale to US listed technology business PING Identity, achieving a 2.9x money multiple return and 90% IRR. Symphonic has quickly become a leading player in the fast growing Identity and Access Management
Table 2: Maven Funds under Management Source: Maven Various dates Fund Latest as at Net asset value Mgt Fees Still to be date invested £m £m Maven Income and Growth VCT 31/08/2020 40.8 1.90% 10.3 Maven Income and Growth VCT 3 31/05/2020 42.9 2.50% 13.4 Maven Income and Growth VCT 4 30/06/2020 72.6 2.50% 17.4 Maven Income and Growth VCT 5 31/05/2020 43.6 1.68% 13.1 VCT TOTALS 199.7 54.2 Coinvestors 31/03/2020 76.8 Property 31/03/2020 49.3 Other Mandates 31/03/2020 334.6 TOTAL £660.4m £54.2m
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Diagram 1: Investment strategies of Growth VCT managers (% fi gures refer to manager expectations of VCT qualifying companies portfolio composition post investment of current fund raising) Source: Fund Managers October 2020
Position in this £10m column does not Draper Esprit 5% Draper Esprit 95% indicate deal size
Albion 40%
£4m Octopus Apollo 45% Octopus Apollo 10% Octopus Apollo 45%
Mobeus 40% Mobeus 40% Mobeus 20%
Baronsmead 20% Baronsmead 25% Average Puma 40% Puma 40% Puma 20% invested ProVen 50%
per deal Albion 10% from all ProVen 50% funds Octopus Titan 10% managed Foresight Will 40% Foresight Will 55% Foresight Will 5% by the Maven 60% Maven 10% Maven 20% Maven 10% manager Downing 8% Downing 85% Downing 7% £2m Octopus Titan 75% Octopus Titan 15% Albion 35%
Baronsmead 25% Baronsmead 30%
Pembroke 35%
Triple Point 80% Triple Point 10%
£1m Albion 15% Pembroke 60%
Pembroke 5% <£1m
Triple Point 10%
Pre‑Profi t Post‑Profi t Seed capital/ Larger Develop‑ Asset backed Early stage AIM stocks High Growth and Development capital ment Capital Deals opportunities - high risk with hopefully - should have potential for rapid growth and exit - relatively low returns but - low return and should be -some stocks are dividend high return within 3-5 years should be lower risk low risk paying - all equity investment - some VCT loan interest may be deferred until exit - companies usually - should be able to sup- - limited liquidity - should have potential - usually no bank debt because of lack of assets for profi table port interest on debt - potential volatility for rapid growth security and companies may not be able to support - companies should be interest payments able to sustain loan - focus on high growth market sectors in which interest payments company growth should be less dependent on the - profi table companies performance of the whole economy seeking capital for November 20, 2020 6:43 PM expansion
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(IAM) market, developing a software solution that enables organisations to securely share time-critical, sensitive information by managing access to data and services in the face of increasing obligations in terms of data security, General Data Protection Regulation (GDPR) and Open Banking regulations. Its strong channel partnership with PING led to this strategic acquisition.
TER classification The Maven VCTs have always been classified as "Generalist VCTs with a track record".
The Offer This is the twelfth VCT offer by Maven VCTs in the past eleven years. This fund raising is for Maven Income and Growth VCT (Maven VCT 1) and Maven Income and Growth VCT 5 who between them are seeking £40m. An aspect of the offer structure is that there is no fixed linkage and the investor can choose to invest in a single VCT or in both using one application form, and can choose the split of their application between the VCTs. In all cases the minimum total application amount (across the two VCTs) is £5,000 (subject to a minimum of £1,000 for any one VCT).
This offer is a further fund raising into these two established VCTs, which means that investors will be buying into the existing portfolios of investments, as well as providing funds for the VCT to make further VCT qualifying investments.
Both Maven VCTs 1 and 5 have the same private equity and AIM investment focus as the other Maven VCTs, with a similar private company asset profile and invest predominantly in a broad base of private and AIM quoted companies, aiming to invest in growth focused private companies, with the objective of achieving medium to long term capital appreciation and generating maintainable levels of shareholder distributions.
Maven targets investment in young and dynamic growth businesses with defensive characteristics that often benefit from contracted or recurring revenues and, say Maven, may be less directly affected by the recent economic downturn.
During 2020, Maven’s investment team has backed eleven private companies, as well as a number of AIM investments, including businesses active in defensive sectors such as software, cyber security, web archiving, data analytics, training, healthcare and funeral services, which are generally less directly consumer dependent and have been less affected by the global COVID-19 outbreak.
Both VCTs also invest in carefully selected AIM quoted investments, via a specialist AIM team in London with many years’ experience in that market, who have developed long standing relationships with key AIM brokers to ensure that Maven is introduced to suitable VCT qualifying opportunities.
The Boards of the VCTs believe that VCTs with a hybrid private equity and AIM investment model are well positioned to mitigate risk by constructing a widely diversified portfolio, allowing Shareholders to benefit from access to different companies and markets with complementary liquidity and return characteristics.
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Whereas earlier stage private company investments typically require medium to long term committed capital, and may require several rounds of equity finance before reaching their maximum potential, AIM is a more liquid market that may allow the Manager to trade out gains (subject at all times to maintaining the VCT qualifying level of each Company) which may be used in support of dividend payments. Maven tell us they trade elements of the AIM portfolio more actively, on the basis that the cornerstone of each portfolio (and its qualifying need) is made up principally of private company holdings, which typically take longer to grow in value and exit. Symphonic is an exception to this rule.
Maven VCT 1 has only 2.4% of its investment portfolio in AIM quoted holdings, having historically had a predominantly private company focus, but is progressively increasing its exposure to AIM in order to broaden the portfolio by number of holdings and asset type. Maven VCT 5 has a larger proportion of its investment portfolio in AIM (21%) than the other three Maven VCTs, as a result of its history as an AIM focused VCT prior to the appointment of Maven as manager in 2011. Since that time the Maven team has repositioned the portfolio and managed a transition to a hybrid private company and AIM focused VCT.
Maven’s view is that this investment approach reduces the investment risk for investors by diversifying across a broad asset base (currently more than 50 private companies for each VCT).
As can be seen from Diagram 1, all of the Maven VCTs have a generalist investment strategy and invest in companies across a range of different growth stages.
Maven has managed Maven Income and Growth VCT 5 (Maven VCT 5) since 2011, when Maven was appointed to replace the incumbent manager of the AIM focused Bluehone AiM VCT2 PLC (previously known as AiM VCT2 PLC, and incorporating Bluehone AiM VCT PLC), with a mandate to adopt the private equity focused investment strategy used by the other Maven VCTs.
Maven describes the investment strategy of the VCTs as targetting investments across a wide range of sectors, in carefully vetted private and AIM quoted companies that have strong core characteristics, and which are led by a capable management team with a proven track record in previous businesses.
Maven look to invest in companies which have proprietary technology or intellectual property, or a business model that has the potential to improve shareholder value by having a significant impact on its sector or market, either by displacing existing products, or by creating a new or enhanced product or service.
Investments will be made across the UK geographic regions by deal teams operating from ten regional offices (two have been closed since our last review, Aberdeen and Preston), and there is no specific industry sector bias. Maven say that this approach maximises Maven’s regional office network based in Birmingham, Bristol, Durham, Edinburgh, Glasgow, London, Manchester, Newcastle, Nottingham and Reading.
Maven has been able to achieve an effective transition of investment focus for the VCTs to
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an earlier stage strategy following the changes in VCT rules since 2015, and has added 44 new qualifying private company investments to the VCT portfolios in around four and a half years, in younger and fast growing companies which it believes have the potential for generating significant cash multiple returns. A significant element of the portfolio remains invested in older, pre 2015 companies which are typically more mature, and which Maven believe helps balance the risk alongside the younger portfolio.
The manager believes that in view of the requirement for VCTs to invest at an earlier stage in the development of private companies, in tandem with its expertise in sourcing and completing a range of transaction types this allows it to ensure a significant degree of risk management in an area of perceived higher investment risk, whilst allowing the investors to gain exposure to the attractive opportunities that ambitious, high-growth SMEs can provide.
During 2020 Maven has backed eleven private companies, including businesses active in defensive sectors such as software, cyber security, data analytics, training, healthcare and funeral services, which are generally less consumer facing and have been less directly affected by the global COVID-19 outbreak.
Maven also tells us that it has taken a prudent approach of committing modest initial amounts into a number of new investments, with the expectation that additional tranched funding will be provided to help accelerate growth so long as the business achieves agreed commercial milestones.
This approach enables Maven to support a business progressively as it proves the initial investment case, through the gradual and ongoing provision of capital, as well as support on strategic and operational issues. Maven’s executives work closely alongside each private company management team, typically taking a seat on the board so that Maven can maintain a strong working knowledge of commercial progress. In cases where a requirement for follow-on funding is identified, the Manager applies the same investment appraisal process as for new investments, only providing support where the business is demonstrating positive trading progress against early commercial milestones, or where there is an identifiable market opportunity for the business.
In order to further manage the risk associated with investment in earlier stage businesses, the four Maven VCTs typically co-invest in new and follow-on transactions, as well as sometimes co-investing alongside Maven managed non-VCT funds. Co-investment enables the Maven VCTs to invest more, collectively, than would be the case if a single VCT was investing, and allows a larger number of investments to be completed in order to spread portfolio risk. Maven will also consider syndicated investment where appropriate and has completed several Qualifying Investments since 2016 alongside other experienced VCT managers, institutional or high net worth investors.
Maven points out that Shareholders’ exposure to earlier stage companies is balanced with the remaining established portfolio of later-stage VCT investments made before 2016, which were typically structured to provide a reliable yield, in tandem with the potential for capital gain. The aim was to provide Shareholders with a sustainable underlying income stream (typically achieved through investments with a significant loan-stock element.)
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though new investments are subject to the overriding need (introduced as new money legislation for VCTs in April 2012) to structure transactions with a maximum 30% in loan stock and 70% in equity.
As a result, the Maven VCT 1 and VCT 5 unlisted portfolios still comprise 40% (22 holdings) and 37% (22 holdings) respectively invested in more mature private company assets.
Although the proportion of later stage private equity investments will continue to reduce over time for both VCTs, as they make further growth capital investments into younger and early stage companies, and the more mature assets are realised, it will take some time for the gradual rebalancing of the portfolio to complete.
BuyBack Policy It is our view that investors should favour offers where the Boards have put in place buyback policies to help shareholders seeking to exit and to help keep the share price discount to net asset value at a reasonable level. Current generalist VCT policies are typically in the 5%-10% discount range. The Board of both VCTs have an objective of, at all times, retaining sufficient liquid assets for making investments and for paying dividends.
• Maven VCT 1 has stated an intention (subject to market conditions, available liquidity and the maintenance of its VCT status) to buy back Shares at prices which represent a discount of between 5% and 10% to NAV per share. • Maven VCT 5 has stated an intention (subject to market conditions, available liquidity and the maintenance of its VCT status) to buy back Shares at prices which represent a discount of 10% to 15% to NAV.
It should be noted that just having a Board set a buyback policy is not enough. In our view, for a buyback policy to be of value to investors the VCT needs: a broker (Maven VCTs' broker is Shore Capital); the VCTs have to communicate continually with their broker; and VCTs have to be ready to purchase shares from the broker. In Maven's view, the VCTs meet those criteria and have taken a responsible approach to discounts, as evidenced by the introduction of stated buyback policies. Maven’s London based executives are in daily contact with the broker (Shore Capital), to ensure that they understand the amounts of loose stock available and the wider profile of sellers in the market.
Our view is that the whilst the Maven VCT 1 policy is within the standard range for generalist VCT policies, the Board of Maven VCT 5 is not sufficiently committed to really reducing the discounts, albeit the recent history of buybacks have been at discounts within its stated range of discounts.
Tax Efficient Review Strategy rating: 29 out of 30
Track record Our approach to comparing track records between providers has changed from previous years. We now use 3, 5 & 10 year measures of the annual increase in total return (calculated as closing net asset value less opening net asset value plus dividends paid during the period). This reflects the changes in strategy that VCTs have adopted which makes the old track record less relevant.
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Table 3: Generalist VCT provider 3,5 & 10 year performance comparison Annual Annual Annual VCT manager return return return (alphabetical VCT name Data as at over over over order) last 3 last 5 last 10 years years years Albion Development VCT 30/09/2020 8.8% 8.2% 6.8% Albion Enterprise VCT 30/06/2020 8.8% 7.8% 7.8% Albion Technology & General VCT 30/09/2020 8.6% 5.3% 3.5% Albion Albion Venture Capital Trust 30/06/2020 4.9% 6.8% 4.9% Crown Place VCT 30/06/2020 8.8% 8.2% 6.6% Kings Arms Yard VCT 30/09/2020 3.8% 5.9% 8.5% Proven VCT 31/08/2020 0.4% 3.5% 5.4% Beringea Proven Growth & Income VCT 31/08/2020 -2.4% 0.6% 5.1% Draper Esprit Draper Esprit VCT 30/06/2020 -3.8% -0.1% 4.8% Gresham Baronsmead Second VCT 31/08/2020 0.5% 2.7% 7.2% House Baronsmead VCT 31/08/2020 0.2% 2.5% 7.7% Maven Income & Growth VCT 5 31/08/2020 5.5% 5.0% 6.0% Maven Income & Growth VCT 31/08/2020 2.4% 3.8% 7.2% Maven Maven Income & Growth VCT 3 31/08/2020 0.3% 2.6% 6.1% Maven Income & Growth VCT 4 30/09/2020 1.2% 2.3% 4.8% Octopus Octopus Titan VCT 30/06/2020 3.3% 4.3% 8.2% Pembroke Pembroke VCT B shares 30/09/2020 6.1% 5.3% Source: Tax Efficient Review calculation based on data from public accounts 17/11/2020 Calculation: (Closing period NAV less Opening period NAV plus dividends paid in the period) divided by number of years in the period 17/11/2020 13:22:37 The results are in Table 3 and consist of results for each provider and their VCTs over a 3, 5 and 10 year period. In order to reduce the data down to one figure we score each VCTs' position in the results from 1 (top position) to the total number of VCTs in the analysis (in this case 17), sum them and take an average over the three periods being measured. Thus lower numbers are better.
The results are: PROVIDER AVERAGE POSITION (lower is better) Albion 6 Octopus 7 Pembroke 9 Gresham House 11 Maven 11 Beringea 14 Draper Esprit 16
This analysis covered by Table 3 shows that Maven's performance has been below the median level in the periods covered, with its best result (MIG 1 over ten years) placing it joint fourth out of seventeen funds.
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Other details on the portfolio:
• Table 5 shows the portfolio valuation methodologies used, with cost being the main methodology (around 40% of each VCT's unquoted portfolio) reflecting the relatively young make-up of both VCT portfolios. Impairments affect 27% of the combined portfolio of both VCTs by value.
• In Table 6, in order to check on potential manager overvaluation of holdings, we asked Maven for the previous four valuations (as reported in quarterly published statements) for each of the last five exits. The valuations show that two exits were significantly above holding value over the last three quarterly reporting periods. Maven Coinvest Endeavour LP and Symphonic Software Limited. We asked Maven for a comment on the 31% increase in the internally run fund Maven Coinvest Endeavour LP: Maven told us "The business had a large debt facility with Ares (mezz lender) which meant the equity proceeds were very sensitive to the price achieved. We were cautious on valuation until we could see an exit in full sight".
• Table 7 shows the investments made across all the Maven VCTs from April 2019 to 30 September 2020 in unquoted companies (£42.1m) and AIM Companies (£4.7m) under the new strategy. In the 12 months to September 2020 Maven invested £13.4m in follow-on investments and £20.6m in new companies (of which £4m was in AIM listed companies).
• Tables 9 to 12 are complete lists of the quoted and unquoted holdings in VCT 1 & VCT 5. The main point is that in both VCTs the total value of all the Quoted and Unquoted holdings is showing a loss.
Tax Efficient Review Track Record rating: 33 out of 40
Manager Maven was established in 2009 by the executive team that was previously the private equity division of Aberdeen Asset Management, where the same team had managed the VCT portfolio since September 2004.
Maven’s national team of private equity investment and portfolio executives operates out of ten regional offices across the UK, ranging from Central Scotland to London, Reading and Bristol in the South of England, and providing full coverage of the UK regions for SME investment. The bulk of the senior team has been together for around fifteen years now, running private company and listed portfolios.
In addition to managing four VCTs, Maven has a syndicate of Investor Partners (HNW individuals, family offices and private equity managers). It also manages a number of regional equity, mezzanine and debt based funds where it invests on behalf of Government agencies, regional enterprise agencies or city authorities. The aim of these entities is to invest in profitable and growth focused SMEs that are struggling to access the growth finance they need to expand (this includes funds managed on behalf of the British Business Bank, as part of the Northern Powerhouse Investment Fund and Midlands Engine Investment Fund established as part of wide ranging UK Government initiatives in those regions).
These client funds can invest alongside the VCTs when appropriate, though typically the funding for VCT qualifying investments will be provided wholly by the VCT clients, and the VCTs will in any event always take preference in determining allocations to VCT qualifying investments. Reprinted for the use of Maven Capital Partners 11 Maven Income and Growth VCT and Maven Income and Growth VCT 5
In total Maven has £650m (as at 30 September 2020) in aggregate of assets under management or available for investment on behalf of client funds (this comprises £485m of AUM, including c.£198m for the four VCTs, and £174m of undrawn, committed funds available to invest on behalf of the Regional Buyout Fund, and regional equity/debt funds referred to above).
One of Maven’s key goals is to maintain a UK wide investment team, making unquoted investments that have a broad geographic spread and will not focus on any specific industry sector. The investment executives working on those other client funds provide additional coverage of the SME market and corporate finance adviser market for Maven’s national team, and are introduced to range of investments including potential VCT qualifying assets.
Maven believes that private company investments in the UK regions outside London and the South East can often be obtained at better comparative pricing than in London, where competition can be greater, and has embedded long term corporate finance advisory relationships in each region which ensure consistent access to high quality investment opportunities.
Maven says its investment team is focused on delivering a consistent flow of private company introductions and thoroughly assessing each potential investment. The Maven investment team is introduced to around 700-800 new transaction opportunities each year which meet its initial VCT investment criteria or are introductions initially for other client funds which can have potential as VCT investments). Deals are sourced from a regional network of professional and corporate finance connections, many of whom Maven executives have worked with for many years.
The activities of the team are listed in Table 13.
The size of the challenge for an investment team depends on: funds already raised and requiring investing, forthcoming exits that will require re-investing and the impact of new funds being raised.
So how does Maven fare? Table 13 shows the team members and where they spend their time. In terms of investing the team is equivalent to 5.4 full-time equivalents (the sum of rows "Deal origination" and "New deal doing" for individuals with more than two years involvement with VCTs).
The funds still awaiting investment across all Maven VCTs to meet the Boards current preferred level of 83% total £54m (see Table 2 for breakdown) which needs to be invested over the next 24 months. As the number was at various dates between March and August 2020, Maven tell us that since those dates £8.8m has been deployed and £3.0m has been paid out in dividends leaving £42.4m over 24 months or £21m over the next year.
Assuming the current offering raises its full subscription of £40m, this would add another £33m (83%, the new Board set minimum invested level, of £40m) or £17m per annum over two years. Whilst three years is the time allowed by the VCT rules, we consider that period too long to avoid an element of cash drag on performance
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We would normally assume that on average 14% of the VCT unquoted portfolios need to be reinvested each year following realisations (based on an average time to exit of around seven years) and this would add roughly another £28m (Table 2 shows total VCT funds under management is £199m times 14%). The figure could be lower than this as the portfolio is quite young, some of the exit value will be profit which will be paid out as dividends and account also needs to be taken of cash needed to fund buybacks and pay VCT running costs. Maven tell us that their estimate of the cash required to fund potential buybacks, dividends and fees per annum across all their VCTs is £10m.
So the amount that we think the team could under our assumptions need to invest over the next twelve months is around £56m (£21m from funds awaiting investment plus £17m from this fund raising plus reinvestment of exits at £28m per year less annual estimated running costs of £10m).
With the current knowledge and experience in the investment team, the deployment run rate over past 12 months to September 2020 was £34m (£13m in follow-on investments from Table 8 and £21m in new companies from Table 7) compared to our computed deployment rate of around £56m.
It looks as if the team might be pushed to invest all new monies raised.
Tax Efficient Review Team/Deal Flow rating: 17 out of 20
Fees/costs Initial fee An Offer Administration Fee equal to 2.5% of the Application Amounts will be applied to each Application accepted under the relevant Offer. The Offer Administration Fee is reduced by the amount of any applicable Early Investment Incentive.
Ongoing Costs - Management Fees and Arrangements Table 4 is a summary of the Companies’ current fee arrangements with the Manager. Management fees are paid by each Company to the Manager for the provision of investment management and administration services, and their impact is reflected in NAV Total Return performance and VCT costs reported to Shareholders in the Companies’ annual reports and financial statements and in the half-yearly reports.
In addition to the fees in Table 3, Maven may receive arrangement fees in relation to investments made by the Company, such fees being paid by the investee companies. Maven may also receive monitoring fees from investee companies and any fees payable in respect of nonexecutive directors appointed to the boards of investee companies. Maven tell us that arrangement fees generally range from 1% to 3%.
We asked Maven to disclose the actual arrangement fee percentage that was charged for the new investments listed in Table 7 and the annual monitoring/director fees received from the current VCT 1 & 5 portfolios. Maven declined to disclose the amounts as they consider the information as sensitive for commercial negotiations.
Tax Efficient Review Cost rating: 7 out of 10
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Conclusion The 2020 Maven VCT offering is a fund raising for Maven Income and Growth VCTs 1 and 5 and investors have the option to invest in one, or both, VCTs; for one, or both, of the 2020/21and 2021/22 tax years.
Maven Capital Partners are a well-established presence within the VCT industry. They were previously marketed under the Aberdeen banner, prior to the buy out which established the Maven brand in 2009. Bill Nixon has been the constant presence at the helm over this time and this longevity and the level of experience it brings should be celebrated.
The existing portfolios have been constructed using a Generalist strategy, focused on investing predominantly in new private company assets, alongside selective AIM investments made by a specialist AIM team in London. So, prospective investors would be buying into an established portfolio of companies across a range of different points in the growth cycle and across both unquoted and AIM companies. The AIM exposure is small at present, but the investment manager is looking to bolster this exposure going forwards.
Maven are a team that have worked together for many years and which comes with a regional network of offices but comparing the funds deployment rate over the last twelve months at £32m with our computed requirement to deploy around £56m in the next twelve months leads us to question if the team is well enough resourced .
The track record is not top of any of the 3, 5 or 10 year comparisons. We also think that the buyback commitment from the Board of Maven VCT 5 could be further improved to come more into line with industry norms, though both the stated discount policy and actual discount levels for recent buybacks would indicate that this is acknowledged by the Board.
Tax Efficient Review rating: 86 out of 100 (for "VCT Generalist with track record")
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Table 4: Summary of costs Source Maven MAVEN VCT 1 Annual costs Investment man- The VCT pays the Manager a performance related management fee calculated as 20% of the agement fee increase in the net asset value, over the six-month periods to the end of August and Febru- ary in each year, before taking into account the effects of distributions and purchases of the Company’s own shares effected during that period. The fee is subject to a minimum of 1.9% per annum of the net asset value. The net asset value from which the fee is measured is rebased to the higher level whenever a fee above the minimum amount becomes payable. Secretarial fee £100,000 per annum. Other costs Performance in- See “investment management fee” above, as this VCT employs a performance related man- centive fee agement fee. MAVEN VCT 5 Annual costs Investment man- 1.675% per annum of the net asset value. agement fee The Board and the Manager agreed (following the annual review by the Board of the man- agement contract during 2019) that the management fee should be 1.75% of NAV with effect from 1 December 2020. Secretarial fee £86,000 per annum, subject to an annual adjustment to reflect movement in the UK Retail Prices Index. Other costs Performance in- The VCT has performance incentive arrangements that reward Maven for achieving positive centive fee returns on the legacy portfolio and realised capital gains on new investments. These entitle the Manager to receive: • a sum equivalent to 12.5% of the total return over cost generated by each new private equity investment made by the Manager that achieves a realisation, adjusted for any realised losses incurred in respect of other new investments and subject to an annual hurdle of 4% on the new investments realised; • a sum equivalent to 7.5% of the total return over the base date valuation generated by inherited* private equity investments that achieve a realisation, adjusted for any realised losses incurred in respect of other inherited private company investments; and • a sum equivalent to 7.5% of any annual increase in the value of the inherited* quoted port- folio. *The base date for the valuation of the inherited investments is 28 February 2011 and the value for these investments is recalculated as at 30 November each year. In the case of the inherited quoted portfolio, a high watermark is reset on each occasion that a fee becomes payable.
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Table 5: Maven Income and Growth VCT & VCT 5 portfolio stages breakdown by original cost Feb 2020 Source Maven Maven Income and Growth VCT Maven Income and Growth VCT 5 as at Feb 2020 as at May 2020 Number % Number % Cost 23 43% 23 40% Uplift in value, manager valuation based on earnings multiple 12 22% 12 21% Uplift in value, manager valuation based on price of recent investment 4 7% 2 4% Write-down up to 15% 1 2% 0 0% Write-down 16%-25% 1 2% 5 9% Write-down 26%-50% 2 4% 4 7% Write-down 51%-75% 2 4% 2 4% Write-down 76%-100% 9 17% 9 16% Grand total 54 100% 57 100%
Table 6: Last five exits for all Maven VCTs Source: Maven Value Last 4 published valuations before exit achieved Most 2nd 3rd 4th Company Exit date on exit recent oldest oldest oldest to exit valuation valuation valuation £000 £000 £000 £000 £000 ITS Technology Group Limited 17/12/2019 3,574 3,481 3,481 3,481 3,481 Attraction World Holdings Limited 03/02/2020 924 995 1,193 1,193 1,193 Maven Coinvest Endeavour LP 25/06/2020 7,087 6,149 5,386 4,517 3,747 Lawrence Recycling & Waste 19/08/2020 0 0 0 0 0 Management Limited* Symphonic Software Limited 31/10/2020 3,373 2,400 1,200 1,200 1,200 * Lawrence Recycling & Waste Management Limited was struck off Companies House on 19/08/2020
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Table 7: Analysis of last 18 months new investments by Maven VCTs Source Maven Month, Company Business Amount Structure Year NEW COMPANIES HiveHR Ltd Employee engagement platform provider. Apr-19 £250,000 Ords An innovative platform providing consumers with an alternative way to buy insurance products through a Honcho Markets disruptive mCommerce reverse marketplace where Jun-19 £322,500 Ords Ltd insurance companies transparently bid for the business of consumers. Digital Bridge has developed a virtual design tool which Shortbite Ltd utilises design and visualisation software. The tool is (trading as Jun-19 £749,952 A Ords deployed on the websites of large home improvement and DigitalBridge) DIY retailers. The platform’s processes and tools are helping these organisations enhance their service proposition by Delio Ltd providing a compliant way of allowing clients and advisors Jul-19 £1,999,854 B Ords to share and access direct, private market investment opportunities internally and across their networks Filtered Technologies Limited is a provider of advanced, Filtered AI-driven learning and development software to the Technologies Jul-19 £2,499,993 B Ords corporate market and a provider of training content to the Ltd corporate and retail markets. Altra Lloyd's of London Multi-Line Insurance Brokerage (FCA D, E Ords and Aug-19 £700,000 Consultants Ltd authorised) Loan (30%) LightwaveRF Plc Smart homes solutions provider Aug-19 £150,000 Ords Intelligent Ultrasound Group is a revenue generating Intelligent company operating through two divisions, both of which Ultrasound Aug-19 £166,000 Ords are focused on the ultrasound medical imaging market - Group PLC Simulaltion and Clinical AI Relative Insight Linguistic analysis software platform Aug-19 £2,000,000 D Ords Ltd Seen Plc The company is an artificial intelligence (AI) and machine (formerly Sep-19 £400,000 Ords learning focused company operating in the media space. Entertainment AI) E Fundamentals collects and analyses data across client e.fundamentals products' online listings versus competitor brands, Oct-19 £667,000 B1 Ords (Group) Ltd delivering e-commerce solutions to improve client performance. Osirium is a UK cyber security SaaS company that protects Osirium IT assets, infrastructures and devices by preventing Oct-19 £400,000 Ords Technologies Plc targeted cyber-attackers from directly accessing privileged accounts. A technology platform that connects graduates and GradTouch Ltd employers, whilst also streamlining the often time Nov-19 £1,400,000 D Ords consuming and inefficient HR processes. Coniq is a B2B SaaS business providing loyalty and CODILINK UK engagement tools along with a supporting CRM system, Ltd (trading as to drive consumer spend but also importantly understand Dec-19 £1,750,000 B Ords Coniq) consumer data across shopping malls and retail destinations. The Company develops and supplies breakthrough Eden Research biopesticide products and natural microencapsulation Mar-20 £406,500 Ords Plc technologies to the global crop protection, animal health and consumer products industries,
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Table 7: Analysis of last 18 months new investments by Maven VCTs Source Maven Month, Company Business Amount Structure Year Adtech business founded in 2014, by Carl White and Nano Interactive Christian Geyer, who had successfully worked together Mar-20 £2,500,217 A1 Ords Group Ltd at online marketing company ValueClick. Maven invested £2.5m in March alongside £1m from Precursive is a B2B SaaS business which provides an easy to use platform aimed at technology and service-based Precursive Ltd Mar-20 £2,500,000 D Ords businesses which automates client onboarding and resource capacity management. The Business is a supplier of software called ‘Diffusion’ Push Technology which helps its clients to broadcast real-time and time- Mar-20 £2,100,000 B Ords Ltd sensitive data at scale and with high efficiency. Trackwise Trackwise is a specialist manufacturer of high frequency Mar-20 £250,000 Ords Designs Plc printed circuit boards (PCBs). Intilery.com Ltd Customer engagement software to enhance CRM strategies Apr-20 £300,000 A Ords Genedrive is a commercial stage molecular diagnostics company developing and commercialising a low-cost, Genedrive May-20 £100,760 Ords rapid, versatile, simple to use and robust point-of-care (POC) molecular diagnostics platform The Algorithm Cloud based services supporting fleet optimisation to the May-20 £799,999 A Ords People Ltd transport sector Hublsoft Group Hublsoft provides a data visualisation tool designed to give Jun-20 £2,000,000 B Ords Ltd better support to corporate decision makers. Loan Stock Quorum Cyber Provision of managed services to clients to protect against Jun-20 £1,200,000 (70%) and A Security Ltd the growing cyber security threat Ords Velocys is the world’s leading Fischer-Tropsch (collection of chemical reactions that converts a mixture of carbon Velocys Plc Jun-20 £225,000 Ords monoxide and hydrogen into liquid hydrocarbons) technology company. AFC Energy is a global leader in the fuel cell sector. It has a proven fuel cell technology which it is commercialising AFC Energy PLC through its H-Power product, an off-grid electric vehicle Jul-20 £350,000 Ords charging system which is run on hydrogen and produces no emissions Technology company seeking to deploy its integrated DeepMatter software, hardware and machine learning enabled platform Jul-20 £250,000 Ords Group Plc - DigitalGlassware which it believes will become the go-to repository for all chemistry know-how. Feedback has developed Bleepa, an innovative new app which allows medical staff to securely view and discuss Feedback Plc Jul-20 £250,000 Ords high quality medical grade images on mobile devices directly from the hospital’s PACS Revenue generating provider of clinical genetic tests GEN inCode UK using AI, bioinformatics and a globally recognised clinical Jul-20 £1,499,972 B Ords Ltd evidence base to provide predictive analysis of a patient’s health risk, with core focus on cardio health. One Media iP Group is an intellectual property rights acquirer, publisher and distributor, specialising in One Media IP Plc Aug-20 £79,520 Ords purchasing and monetising content with proven, repeat income streams. MirrorWeb Archive Solutions is as the name suggests a MirrorWeb Ltd Sep-20 £1,000,000 E2 Ords website and social media archiving platform. Total invested in new Cos in twelve months September 2019 to August 2020 £20,028,968 Total invested in new Cos in eighteen months April 2019 to August 2020 £29,267,267
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Table 8: Analysis of last 18 months follow-on investments by Maven VCTs Source Maven Month, Company Business Amount Structure Year Cognitive Cognitive develops petroleum geoscience software Apr-19 £250,000 A1 Ords Geology Ltd Faron Faron is a drug discovery and development company Pharmaceuticals focussed on creating novel treatments for medical Apr-19 £250,000 Ords Oy conditions with significant unmet needs. Rockar 2016 Ltd (trading as Innovative Car Retailer Apr-19 £150,000 Loan Notes Rockar) Lydia Ltd is a novel and innovative entrant to the price Lydia Ltd comparison website (PCW) sector, providing a cross-market (trading as May-19 £300,000 B Ords price comparison of tyre purchase and fitting prices aimed Motokiki) at UK consumers. WaterBear is a new private college working in partnership B,C Ords and WaterBear with the University of Chischester offering Master of Arts May-19 £750,000 Loan Notes Education Ltd and BA (Hons) degree programmes to musicians and (30%) creative people. Avacta is a preclinical stage biopharmaceutical company Avacta Group engaged in the development of its proprietary technology Oct-19 £250,000 Ords (AIM) Plc platform (Affimers) with an in-house focus on novel immuno-oncology therapeutics and diagnostics ADC Biotechnology is a pharmaceutical manufacturer ADC of oncology therapeutics. The company has a patented June C Ords + E Biotechnology manufacturing technology that enables the production of 19 - £1,440,534 ords Ltd a blockbuster class of anti-cancer drugs more effectively July 20 than other methods. May 19 Preferred A QikServe Ltd Software platform for the hospitality sector - Mar £749,999 Ords 20 E Ords and Lending Works has established a Peer-to-Peer (P2P) May 19 Lending Works Series A platform at www.lendingworks.co.uk that matches private to Feb £330,777 Ltd Convertible and institutional lenders to individual borrowers. 20 Loan Nov Design, manufacture and assembly of powertrain Convertible AVID Technology 19 - components for the heavy-duty and high-performance £450,643 Loan and S Group Ltd March vehicle markets Shares 20 Developer and designer of advanced surface coating patented technology and has a strong IP portfolio having Hardide Plc 5 patents already and another one pending for turbine Jan-20 £79,980 Ords (AIM) blades. Key markets are oil & gas, flow control, precision engineering and aerospace. Digital Bridge has developed a virtual design tool which Shortbite Ltd utilises design and visualisation software. The tool is (trading as Jan-20 £315,000 A Ords deployed on the websites of large home improvement and DigitalBridge) DIY retailers. HiveHR Ltd Employee engagement platform provider. Feb-20 £1,000,000 Ords Loan Stock Boiler Plan (UK) Boiler Plan sells and installs boilers and boiler servicing Mar-20 £600,000 (30%) and C Ltd plans via its website www.boilerplanuk.com. Ords Bright Network is a media technology platform designed Bright Network to enable leading employers to reach, identify and recruit Mar-20 £1,999,877 B Ords (UK) Ltd good quality graduates and young professionals Diurnal Group Specialty pharmaceutical company. Mar-20 £250,000 Ords Plc
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Table 8: Analysis of last 18 months follow-on investments by Maven VCTs Source Maven Month, Company Business Amount Structure Year Design and manufacture glass-based 3D photonic Optoscribe Mar-20 £263,445 A1 Ords integrated circuits using laser technology. Curo Unsecured Compensation Reward and Compensation SaaS software solution Apr-20 £244,560 Convertible Ltd Loan N E Fundamentals collects and analyses data across client e.fundamentals products' online listings versus competitor brands, Apr-20 £667,000 B1 Ords Group Ltd delivering e-commerce solutions to improve client performance. ebb3 provides computer workspace solutions within a ebb3 Ltd Apr-20 £150,000 B Ords niche part of the supercomputing market. Horizon Horizon Cremation plans to develop, operate and own May-20 £1,200,000 B and C Ords Ceremonies Ltd purpose built crematoria across the UK. Intelligent Ultrasound Group is a revenue generating Intelligent company operating through two divisions, both of which Ultrasound May-20 £399,998 Ords are focused on the ultrasound medical imaging market - Group PLC Simulaltion and Clinical AI The GP Service The GP Service (UK) Limited is a provider of online services May-20 £650,001 D Ords (UK) Ltd for general medical consultations and prescriptions. Growth Capital FCA authorised provider of an online impact investing Jun-20 £125,000 C Ords Ventures equity co-investment platform and innovation hub. Relative Insight Linguistic analysis software platform Jun-20 £1,000,000 D Ords Ltd Contego Northrow Ltd is a RegTech company that provides complex, Solutions Ltd multi-source compliance and fraud detection checks, Jul-20 £1,079,994 D1 Ords (trading as streamlining the compliance and regulatory needs of NorthRow) institutional clients. Pelatro Plc provides precision marketing software for use Pelatro Plc Aug-20 £146,170 Ords by its customers in B2C applications C4X is a biotech business, specifically a drug discovery Oct 19 C4X Discovery company focussed on discovering best in class molecules. to May £315,500 Ords (AIM) Holdings PLC Once discovered all molecules are out-licensed to partners 20 at an early stage to derisk the proposition. B Ords, B1 Life's Great Sept Ords, F Ords, Group Limited Digital mortgage broker 19 to £2,113,074 F1 Ords and (trading as Mojo July 20 Convertible Mortgages) Loan Total follow-on investment in eighteen months April 2019 to August 2020 £17,521,550
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Table 9: Maven Income and Growth VCT PLC quoted holdings as at 29 February 2020 Source Maven Cost Value Gain/ Date of (Loss) Investment £000 £000 £000 Quoted Cello Health Plc 310 387 77 20/10/2004 Avacta Group Plc 108 162 54 31/10/2019 Vianet Group plc (formerly Brulines Group 37 39 2 18/09/2007 Plc) Intelligent Ultrasound Group PLC 83 79 -4 28/08/2019 Angle Plc 114 106 -9 19/02/2015 C4X Discovery Holdings PLC 33 24 -9 24/10/2019 Hardide PLC 80 69 -11 24/01/2020 Marwyn Management Partners (formerly 17 0 -17 22/07/2011 Praesepe PLC) Seen Plc (formerly Entertainment AI PLC) 150 133 -17 30/09/2019 Osirium Technologies Plc 100 51 -49 22/10/2019 Kazera Global PLC (formerly Kennedy Ventures PLC) 200 0 -200 22/05/2007 Total quoted 1,232 1,050 -182
Private equity investment trusts HarbourVest Global Private Equity Ltd 250 278 28 02/04/2019 BMO Private Equity Trust (formerly F&C Private Equity) 155 172 17 14/09/2016 HgCapital Trust PLC 64 72 8 13/09/2016 Princess Private Equity Holding Limited 158 166 8 14/09/2016 ICG Enterprise Trust PLC 153 157 4 02/04/2019 Apax Global Alpha Limited 71 74 3 13/09/2016 Pantheon International PLC 176 177 1 02/04/2019 Standard Life Private Equity Trust PLC 251 244 -7 14/09/2016 Total private equity investment trusts 1,278 1,340 62
Real estate investment trusts Regional REIT Limited 87 92 5 23/11/2016 Total real estate investment trusts 87 92 5
Unit trusts Royal London Cash Plus Fund Y (Acc) 1,000 1,005 5 13/09/2019 Royal London Short Duration Credit Fund Z Inc 1,000 1,005 5 13/09/2019 Total unit trusts 2,000 2,010 10 4,596 4,491 -105
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Table 10: Maven Income and Growth VCT Unquoted portfolio analysis as at 31 August 2020 Source Maven Loan Equity
Investee name Industry sector Financing stage Financing Current Value Value £000 Current Valuation method** Valuation Amount invested £000 invested Amount Date of first investment Date Percentage of equity held Percentage Electronic Uplift in value, manager Martel Instruments Holdings Mature 1,234 1,966 14.9 17/01/2007 92.34% 7.66% & Electrical valuation based on Ltd1 stage, MBO Equipment earnings multiple Uplift in value manager Early valuation based on Horizon Ceremonies Ltd1 788 1,184 4.2 31/05/2017 40.70% 59.29% Support Services Stage, Pre- discounted cash flows of Revenue the investment Uplift in value, manager Mature CatTech International Ltd 627 1,169 6.0 30/03/2012 70.35% 29.65% Support Services valuation based on stage, MBO earnings multiple Maven Co-invest Endeavour Later Stage, Uplift in value, manager Ltd Partnership (invested in 435 1,089 24.3 01/11/2013 0.00% 100.00% General Financial Pre-profit valuation based on Global Risk Partners Ltd) expansion earnings multiple Uplift in value, manager Vodat Communications Group Mobile Mature 567 1,024 4.2 27/03/2012 70.23% 29.77% valuation based on Ltd Telecommunications stage, MBO earnings multiple Early Uplift in value, manager Software & Bright Network (UK) Ltd1 940 971 8.5 17/07/2018 0.00% 100.00% Stage, Pre- valuation based on Computer Services Revenue earnings multiple* Early Uplift in value, manager Pharmaceuticals The GP Service (UK) Ltd1 860 892 10.3 29/04/2016 17.44% 82.56% Stage, Pre- valuation based on & Biotechnology Revenue earnings multiple Oil Equipment, Later Stage, HCS Control Systems Group 846 846 6.9 24/12/2012 72.19% 27.81% Services & Pre-profit Cost Ltd Distribution expansion Uplift in value, manager Pharmaceuticals Mature CB Technology Group Ltd1 579 843 11.8 19/12/2014 70.35% valuation based on & Biotechnology stage, MBI earnings multiple Software & Early Uplift in value, manager Life's Great Group Ltd (trading 820 825 10.0 08/02/2019 0.00% 100.00% Computer Stage, Pre- valuation based on price as Mojo Mortgages)1 Services Revenue of recent investment Software & Early Contego Solutions Ltd 798 798 6.6 07/07/2017 19.15% 80.85% Computer Stage, Pre- Cost (trading as NorthRow)1 Services Revenue Software & Early Relative Insight Ltd1 700 700 3.7 10/08/2017 0.00% 100.00% Computer Stage, Pre- Cost Services Revenue Oil Equipment, Glacier Energy Services Mature 688 688 2.7 25/03/2011 79.12% 20.88% Services & Cost Holdings Ltd stage, MBI Distribution Software & Early Uplift in value, manager Whiterock Group Ltd 321 676 5.2 13/12/2016 27.38% 72.61% Computer Stage, Pre- valuation based on Services Revenue earnings multiple Early Uplift in value, manager Rockar 2016 Ltd (trading as Automobiles & 580 672 3.0 14/07/2016 28.31% 71.69% Stage, Pre- valuation based on Rockar) Parts Revenue earnings multiple Oil Equipment, Later Stage, Uplift in value, manager RMEC Group Ltd 463 659 2.9 07/04/2014 74.54% 25.46% Services & Pre-profit valuation based on Distribution expansion earnings multiple Software & Early Qikserve Ltd1 659 659 3.0 20/12/2016 0.00% 100.00% Computer Stage, Pre- Cost Services Revenue Software & Early Nano Interactive Group Ltd1 625 625 3.7 19/03/2020 0.00% 100.00% Computer Stage, Pre- Cost Services Revenue
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Table 10: Maven Income and Growth VCT Unquoted portfolio analysis as at 31 August 2020 Source Maven Loan Equity
Investee name Industry sector Financing stage Financing Current Value Value £000 Current Valuation method** Valuation Amount invested £000 invested Amount Date of first investment Date Percentage of equity held Percentage Software & Mature Flow UK Holdings Ltd1 598 598 7.3 26/03/2015 70.22% 29.78% Computer Cost stage, MBO Services Software & Early Delio Ltd1 533 533 3.6 23/07/2019 0.00% 100.00% Computer Stage, Pre- Cost Services Revenue Software & Early Push Technology Ltd1 525 525 2.8 31/03/2020 0.00% 100.00% Computer Stage, Pre- Cost Services Revenue Software & Early Precursive Ltd1 500 500 4.3 31/03/2020 0.00% 100.00% Computer Stage, Pre- Cost Services Revenue Software & Early CODILINK UK Ltd (trading as 450 450 1.3 20/12/2019 0.00% 100.00% Computer Stage, Pre- Cost Coniq)1 Services Revenue Later Stage, Ensco 969 Ltd (trading as DPP) 733 443 4.9 20/03/2013 69.82% 30.18% Support Services Pre-profit Write-down 26%-50% expansion Software & Early Uplift in value, manager Filtered Technologies Ltd1 400 435 4.3 04/07/2019 0.00% 100.00% Computer Stage, Pre- valuation based on Services Revenue earnings multiple* Software & Early Boiler Plan (UK) Ltd1 400 400 8.2 04/10/2018 0.00% 100.00% Computer Stage, Pre- Cost Services Revenue Early Uplift in value, manager Pharmaceuticals BioAscent Discovery Ltd1 174 392 4.4 19/06/2018 0.00% 100.00% Stage, Pre- valuation based on & Biotechnology Revenue earnings multiple* Software & Early Uplift in value, manager Symphonic Software Ltd1 185 370 2.2 15/03/2019 0.00% 100.00% Computer Stage, Pre- valuation based on Services Revenue earnings multiple* Early Uplift in value, manager WaterBear Education Ltd3 245 348 5.1 06/02/2018 29.71% 70.28% Support Services Stage, Pre- valuation based on Revenue earnings multiple* Software & Early Uplift in value, manager ebb3 Ltd1 252 340 6.0 18/05/2017 21.85% 78.15% Computer Stage, Pre- valuation based on Services Revenue earnings multiple* Software & Early Gradtouch Ltd1 400 300 5.8 27/11/2019 0.00% 100.00% Computer Stage, Pre- Write-down 16%-25% Services Revenue Software & Early HiveHR Ltd 300 300 5.2 05/04/2019 0.00% 100.00% Computer Stage, Pre- Cost Services Revenue Software & Early Hublsoft Group Ltd 300 300 4.7 16/06/2020 0.00% 100.00% Computer Stage, Pre- Cost Services Revenue Software & Early Uplift in value, manager e.fundamentals (Group) Ltd1 200 300 1.6 04/10/2019 0.00% 100.00% Computer Stage, Pre- valuation based on Services Revenue earnings multiple* Early Uplift in value, manager General Growth Capital Ventures Ltd1 257 269 5.3 30/11/2016 0.00% 100.00% Stage, Pre- valuation based on price Financial Revenue of recent investment Software & Early Shortbite Ltd (trading as 258 257 2.8 14/06/2019 0.00% 100.00% Computer Stage, Pre- Cost DigitalBridge)1 Services Revenue
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Table 10: Maven Income and Growth VCT Unquoted portfolio analysis as at 31 August 2020 Source Maven Loan Equity
Investee name Industry sector Financing stage Financing Current Value Value £000 Current Valuation method** Valuation Amount invested £000 invested Amount Date of first investment Date Percentage of equity held Percentage TC Communications Holdings Mature 413 241 3.5 03/05/2008 89.84% 10.16% Support Services Write-down 26%-50% Ltd stage, MBO Software & Early Curo Compensation Ltd1 298 228 2.4 15/12/2017 13.84% 86.16% Computer Stage, Pre- Write-down 16%-25% Services Revenue Oil Equipment, Later Stage, ISN Solutions Group Ltd1 323 205 4.6 10/03/2014 63.43% 36.57% Services & Pre-profit Write-down 26%-50% Distribution expansion Software & Early Lending Works Limtied1 407 203 3.4 09/04/2018 0.00% 100.00% Computer Stage, Pre- Write-down 26%-50% Services Revenue Health Care Early GEN inCode UK Ltd1 200 200 2.2 31/07/2020 0.00% 100.00% Equipment & Stage, Pre- Cost Services Revenue Technology Early Optoscribe Ltd1 187 187 1.5 13/09/2018 0.00% 100.00% Hardware & Stage, Pre- Cost Equipment Revenue Oil Equipment, Mature R&M Engineering Group Ltd 762 172 8.6 12/12/2013 75.06% 24.94% Services & Write-down 76%-100% stage, MBO Distribution Software & Early Quorum Cyber Security 1 150 150 2.6 26/06/2020 70.83% 29.17% Computer Stage, Pre- Cost Services Revenue Early General Altra Consultants Ltd 100 100 1.7 19/10/2017 30.00% 70.00% Stage, Pre- Cost Financial Revenue Software & Early The Algorithm People Ltd 100 100 3.3 07/05/2020 0.00% 100.00% Computer Stage, Pre- Cost Services Revenue Early Automobiles & AVID Technology Group Ltd1 365 91 1.5 26/02/2019 38.42% 61.58% Stage, Pre- Write-down 51%-75% Parts Revenue Oil Equipment, Mature Fathom Systems Group Ltd 711 77 8.0 17/12/2014 75.50% 24.50% Services & Write-down 76%-100% stage, MBO Distribution Software & Early Intilery.com1 75 75 3.3 02/04/2020 0.00% 100.00% Computer Stage, Pre- Cost Services Revenue Early Software & Honcho Markets Ltd1 65 65 1.2 26/02/2018 0.00% 100.00% Stage, Pre- Cost Computer Services Revenue Mature Space Student Living Ltd1,2 - 45 11.5 13/06/2011 90.00% 10.00% Support Services Cost stage, MBO Oil Equipment, Later Stage, FLXG Scotland Ltd (formerly 277 41 1.8 25/10/2010 83.16% 16.84% Services & Pre-profit Write-down 76%-100% Flexlife Group Ltd)1 Distribution expansion Electronic Early LightwaveRF PLC 74 40 0.9 20/08/2019 0.00% 100.00% & Electrical Stage, Pre- Write-down 51%-75% Equipment Revenue Early Pharmaceuticals ADC Biotechnology Ltd - - 3.6 21/09/2017 0.00% 100.00% Stage, Pre- Write-down 76%-100% & Biotechnology Revenue Software & Early Cognitive Geology Ltd1 224 - 3.6 29/09/2017 0.00% 100.00% Computer Stage, Pre- Write-down 76%-100% Services Revenue
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Table 10: Maven Income and Growth VCT Unquoted portfolio analysis as at 31 August 2020 Source Maven Loan Equity
Investee name Industry sector Financing stage Financing Current Value Value £000 Current Valuation method** Valuation Amount invested £000 invested Amount Date of first investment Date Percentage of equity held Percentage Software & Early Lydia Ltd (trading as 117 - 2.8 31/10/2018 0.00% 100.00% Computer Stage, Pre- Write-down 76%-100% Motokiki)1 Services Revenue Lawrence Recycling & Waste Mature 775 - 0.0 23/01/2019 90.94% 9.06% Support Services Write-down 76%-100% Management Ltd1 stage, MBO Later Stage, General Claven Holdings1 215 - 14.7 21/02/2011 58.00% 42.00% Pre-profit Write-down 76%-100% Financial expansion Mature CHS Engineering Services Ltd1 451 - 4.0 17/12/2010 89.54% 10.46% Support Services Write-down 76%-100% stage, MBO Software & Early Milamber 25 - 18/09/2007 0.00% 100.00% Computer Stage, Pre- Write-down 76%-100% Services Revenue Later Stage, Automobiles & D Mack Ltd1 523 - 5 23/12/2013 65.38% 34.62% Pre-profit Write-down 76%-100% Parts expansion 1Accounts prepared in accordance with small companies exemption. 2Company in administration 3Company has not produced it's first published set of accounts. The financing stage (column K) for the early-stage investments has been set to "Early Stage, Pre-Revenue", however, these companies have generated revenue apart from Altra Consultants The current value of Space Student Living is based on the recovery proceeds from litigation *The valuations of ebb3, Bright Network and BioAscent Discovery are based on a multiple of revenue
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Table 11: Maven Income and Growth 5 VCT PLC Quoted holdings as at 31 May 2020 Source Maven Cost Value Gain/ Date of (Loss) Investment £000 £000 £000 Quoted Ideagen Plc (Formerly Datum Plc) 162 4,443 4,281 06/05/2005 Water Intelligence Plc 270 1,036 766 18/12/2009 Concurrent Technologies Plc 161 522 361 01/07/2005 Avingtrans Plc 54 208 154 28/09/2004 Avacta Group Plc 13 157 144 31/10/2019 Anpario (formerly Kiotech International Plc) 57 170 112 07/04/2000 Renalytix AI plc 0 107 107 Netcall Plc 26 107 81 28/10/1999 Vectura Group Plc 75 130 55 17/04/2001 Access Intelligence Plc 362 405 43 24/02/2010 Intelligent Ultrasound Group PLC 83 99 17 28/08/2019 Trackwise Designs Plc 63 74 12 31/03/2020 Diurnal Group Plc 63 64 2 26/03/2020 C4X Discovery Holdings PLC 47 49 2 24/10/2019 Eden Research Plc 101 101 - FireAngel Safety Technology Group Plc 36 21 -15 01/07/2008 Genedrive 16 33 -16 28/05/2020 DeepMatter Group plc 201 177 -24 12/03/2019 Vertu Motors Plc 50 25 -25 12/03/2007 Egdon Resources Plc 48 11 -37 20/06/2001 Osirium Technologies Plc 100 57 -43 22/10/2019 Seen Plc (formerly Entertainment AI PLC) 100 56 -44 30/09/2019 K3 Business Technology Group Plc 238 144 -94 18/12/2006 ClearStar Inc 435 306 -130 11/07/2014 Vianet Group plc (formerly Brulines Group Plc) 405 263 -142 20/10/2006 RUA Life Sciences PLC (Formerly Aortech) 229 78 -151 29/07/1999 Synectics Plc (formerly Quadnetics Group Plc) 308 151 -156 01/07/2005 Premier Oil Plc 169 11 -159 13/10/2010 IGas Energy Plc 184 4 -180 14/07/2009 Bond Intl Software Plc (in liquidation) 188 0 -188 20/02/2004 Norseman Gold 193 0 -193 07/10/2010 AfriAg Plc (formerly 3D Resources Plc) 300 2 -298 17/11/2010 Croma Security Solutions Group plc 433 85 -349 26/11/2003 Dods Group Plc 450 34 -417 09/07/2002
26 Reprinted for the use of Maven Capital Partners Maven Income and Growth VCT and Maven Income and Growth VCT 5
Table 11: Maven Income and Growth 5 VCT PLC Quoted holdings as at 31 May 2020 Source Maven Cost Value Gain/ Date of (Loss) Investment £000 £000 £000 Optare Plc 473 2 -471 16/08/2008 Colliers International UK Plc (in admin) 870 0 -870 20/07/2001 Transense Technologies Plc 1,188 19 -1,169 03/10/2001 Infrastrata Plc 2,264 7 -2,258 17/01/2008 Total quoted 10,415 9,156 -1,292
Private equity investment trusts HgCapital Trust PLC 315 337 21 13/09/2016 Apax Global Alpha Limited 289 275 -14 13/09/2016 Pantheon International PLC 236 220 -15 21/03/2019 HarbourVest Global Private Equity Ltd 310 283 -27 11/02/2019 Princess Private Equity Holding Limited 308 271 -37 14/09/2016 BMO Private Equity Trust 342 302 -39 13/09/2016 Standard Life Private Equity Trust PLC 266 220 -46 13/09/2016 ICG Enterprise Trust PLC 324 269 -55 20/03/2019 Total private equity investment trusts 2,390 2,178 -212 TOTAL 12,805 11,334 -1,504
Reprinted for the use of Maven Capital Partners 27 Maven Income and Growth VCT and Maven Income and Growth VCT 5
Table 12: Maven Income and Growth VCT 5 Unquoted portfolio analysis as at May 2020 Source Maven VCTs VCTs Loan £000 £000 Equity Multiple Valuation Valuation
Investee name method** investment equity held Date of first Date co-investing? Current Value Value Current Percentage of Percentage Industry sector Financing stage Financing Amount invested Amount Maven Co-invest Endeavour Ltd Nov- Later Stage, MIG, Partnership 303 758 6.5% 0% 100% General Pre-profit MIG 3, 2.50 (invested in 13 Financial Global Risk expansion MIG 4 Partners Ltd) Mar- MIG, CatTech 299 557 2.9% 70% 30% Support Mature stage, MIG 3, 1.86 International Ltd 12 Services MBO MIG 4 Vodat Mar- MIG, Communications 264 476 2.0% 70% 30% Mobile Mature stage, MIG 3, 1.80 Group Ltd 12 Comms MBO MIG 4 Jun- MIG, BioAscent 174 296 4.4% 0% 100% Pharmaceuticals Early Stage, MIG 3, 1.70 Discovery Ltd1 18 & Biotechnology Pre-Revenue Uplift in MIG 4 value, Whiterock Group Dec- Software & Early Stage, manager MIG, Ltd 321 490 5.2% 27% 73% Computer Pre-Revenue valuation MIG 3, 1.53 16 Services based on MIG 4 Dec- earnings MIG, CB Technology 521 759 10.6% 70% 30% Pharmaceuticals Mature stage, multiple MIG 3, 1.46 Group Ltd1 14 & Biotechnology MBI MIG 4 Apr- Oil Equipment, Later Stage, MIG, RMEC Group Ltd 308 439 2.0% 75% 25% Services & Pre-profit MIG 3, 1.43 14 Distribution expansion MIG 4 May- Software & MIG, ebb3 Ltd1 206 264 4.9% 22% 78% Computer Early Stage, MIG 3, 1.28 17 Services Pre-Revenue MIG 4 Apr- Software & MIG, HiveHR Ltd 350 411 7.1% 0% 100% Computer Early Stage, MIG 3, 1.17 19 Services Pre-Revenue MIG 4 Rockar 2016 MIG, Ltd (trading as 580 672 3.0% Jul-16 28% 72% Automobiles & Early Stage, MIG 3, 1.16 Rockar) Parts Pre-Revenue MIG 4 Uplift in value, manager Nov- MIG, Growth Capital 233 243 5.6% 0% 100% General Early Stage, valuation MIG 3, 1.04 Ventures Ltd1 16 Financial Pre-Revenue based on price of MIG 4 recent investment Apr- Uplift in MIG, The GP Service 860 892 10.3% 17% 83% Pharmaceuticals Early Stage, value, MIG 3, 1.04 (UK) Ltd1 16 & Biotechnology Pre-Revenue manager MIG 4 valuation Bright Network Software & Early Stage, based on MIG, (UK) Ltd1 940 971 8.5% Jul-18 0% 100% Computer Pre-Revenue earnings MIG 3, 1.03 Services multiple MIG 4 Uplift in value, manager Feb- Software & MIG, Honcho Markets 64 65 1.2% 0% 100% Computer Early Stage, valuation MIG 3, 1.02 Ltd1 18 Pre-Revenue based on Services price of MIG 4 recent investment MIG, Horizon May- Support Early Stage, 660 660 3.6% 59% 41% Services Cost MIG 3, 1.00 Ceremonies Ltd1 17 Pre-Revenue MIG 4
28 Reprinted for the use of Maven Capital Partners Maven Income and Growth VCT and Maven Income and Growth VCT 5
Table 12: Maven Income and Growth VCT 5 Unquoted portfolio analysis as at May 2020 Source Maven VCTs VCTs Loan £000 £000 Equity Multiple Valuation Valuation
Investee name method** investment equity held Date of first Date co-investing? Current Value Value Current Percentage of Percentage Industry sector Financing stage Financing Amount invested Amount Glacier Energy Mar- Oil Equipment, MIG, Services Holdings 643 643 2.5% 79% 21% Services & Mature stage, MIG 3, 1.00 Ltd 11 Distribution MBI MIG 4 Mar- Software & Later Stage, MIG, Nano Interactive 625 625 3.7% 0% 100% Computer Pre-profit MIG 3, 1.00 Group Ltd1 20 Services expansion MIG 4 Aug- Software & MIG, Relative Insight 600 600 3.4% 0% 100% Computer Early Stage, MIG 3, 1.00 Ltd1 19 Services Pre-Revenue MIG 4 Contego Solutions Ltd Software & Early Stage, MIG, (trading as 549 549 3.3% Jul-17 16% 84% Computer Pre-Revenue MIG 3, 1.00 NorthRow)1 Services MIG 4 Mar- Software & MIG, Push Technology 525 525 2.8% 0% 100% Computer Early Stage, MIG 3, 1.00 Ltd1 20 Services Pre-Revenue MIG 4 Mar- Software & MIG, Precursive Ltd1 500 500 4.3% 0% 100% Computer Early Stage, MIG 3, 1.00 20 Services Pre-Revenue MIG 4 Mar- Software & MIG, Flow UK Holdings 498 498 6.0% 70% 30% Computer Mature stage, MIG 3, 1.00 Ltd1 15 Services MBO MIG 4 CODILINK UK Dec- Software & MIG, Ltd (trading as 450 450 1.3% 0% 100% Computer Early Stage, MIG 3, 1.00 Coniq)1 19 Services Pre-Revenue MIG 4 Oct- Software & MIG, Boiler Plan (UK) 400 400 8.2% 15% 85% Computer Early Stage, MIG 3, 1.00 Ltd1 18 Services Pre-Revenue MIG 4 Software & MIG, Delio Ltd1 400 400 2.7% Jul-19 0% 100% Computer Early Stage, Cost MIG 3, 1.00 Services Pre-Revenue MIG 4 Software & MIG, Filtered 400 400 4.3% Jul-19 0% 100% Computer Early Stage, MIG 3, 1.00 Technologies Ltd1 Services Pre-Revenue MIG 4 HCS Control Dec- Oil Equipment, Later Stage, MIG, Systems Group 373 373 3.0% 72% 28% Services & Pre-profit MIG 3, 1.00 Ltd 12 Distribution expansion MIG 4 Feb- MIG, AVID Technology 364 364 1.5% 9% 91% Automobiles & Early Stage, MIG 3, 1.00 Group Ltd1 19 Parts Pre-Revenue MIG 4 Shortbite Ltd Jun- Software & MIG, (trading as 257 257 2.8% 0% 100% Computer Early Stage, MIG 3, 1.00 DigitalBridge)1 19 Services Pre-Revenue MIG 4 Feb- MIG, WaterBear 245 245 5.7% 30% 70% Support Early Stage, MIG 3, 1.00 Education Ltd21 18 Services Pre-Revenue MIG 4 Oct- Software & MIG, e.fundamentals 200 200 1.6% 0% 100% Computer Early Stage, MIG 3, 1.00 (Group) Ltd1 19 Services Pre-Revenue MIG 4 Sep- Technology MIG, Optoscribe Ltd1 187 187 1.5% 0% 100% Hardware & Early Stage, MIG 3, 1.00 18 Equipment Pre-Revenue MIG 4 Mar- Software & MIG, Symphonic 185 185 2.2% 0% 100% Computer Early Stage, MIG 3, 1.00 Software Ltd1 19 Services Pre-Revenue MIG 4 Oct- MIG, Altra Consultants 100 100 1.7% 30% 70% General Early Stage, MIG 3, 1.00 Ltd 17 Financial Pre-Revenue MIG 4
Reprinted for the use of Maven Capital Partners 29 Maven Income and Growth VCT and Maven Income and Growth VCT 5
Table 12: Maven Income and Growth VCT 5 Unquoted portfolio analysis as at May 2020 Source Maven VCTs VCTs Loan £000 £000 Equity Multiple Valuation Valuation
Investee name method** investment equity held Date of first Date co-investing? Current Value Value Current Percentage of Percentage Industry sector Financing stage Financing Amount invested Amount May- Software & MIG, The Algorithm 100 100 3.3% 0% 100% Computer Early Stage, Cost MIG 3, 1.00 People Ltd1 20 Services Pre-Revenue MIG 4 Apr- Software & MIG, Intilery.com Ltd1 75 75 3.3% 0% 100% Computer Early Stage, Cost MIG 3, 1.00 20 Services Pre-Revenue MIG 4 Life's Great Group Feb- Software & MIG, Ltd (trading as 667 533 7.4% 18% 83% Computer Early Stage, MIG 3, 0.80 Mojo Mortgages)1 19 Services Pre-Revenue MIG 4 May- MIG, Servoca PLC2 612 470 3.0% 0% 100% Support Early Stage, MIG 3, 0.77 07 Services Pre-Revenue MIG 4 Curo Dec- Software & MIG, Compensation 262 200 2.0% 41% 59% Computer Early Stage, Write-down MIG 3, 0.76 Ltd1 17 Services Pre-Revenue 16%-25% MIG 4 Dec- Software & MIG, Qikserve Ltd1 494 371 2.2% 0% 100% Computer Early Stage, MIG 3, 0.75 16 Services Pre-Revenue MIG 4 Nov- Software & MIG, Gradtouch Ltd1 400 300 5.8% 0% 100% Computer Early Stage, MIG 3, 0.75 19 Services Pre-Revenue MIG 4 Dec- Software & MIG, eSafe Global Ltd1 224 168 4.3% 70% 30% Computer Early Stage, MIG 3, 0.75 17 Services Pre-Revenue MIG 4 ISN Solutions Mar- Oil Equipment, Later Stage, MIG, Group Ltd1 250 159 3.6% 63% 37% Services & Pre-profit MIG 3, 0.64 14 Distribution expansion Write-down MIG 4 Mar- Later Stage, 26%-50% MIG, Ensco 969 Ltd 515 292 2.2% 81% 19% Support Pre-profit MIG 3, 0.57 (trading as DPP) 13 Services expansion MIG 4 Aug- Electronic LightwaveRF Plc 74 40 0.9% 0% 100% & Electrical Early Stage, MIG 0.54 19 Equipment Pre-Revenue ADC Sep- Pharmaceuticals Early Stage, MIG, Biotechnology Ltd 584 219 3.4% 0% 100% & Biotechnology Pre-Revenue MIG 3, 0.38 17 Write-down MIG 4 Jun- Health Care 51%-75% Cambridge 1,184 342 13% 0% 100% Equipment & Early Stage, No 0.29 Sensors Ltd 02 Services Pre-Revenue Dec- Oil Equipment, MIG, R&M Engineering 357 80 4.0% 75% 25% Services & Mature stage, MIG 3, 0.22 Group Ltd 13 Distribution MBO MIG 4 Dec- Oil Equipment, MIG, Fathom Systems 593 64 6.7% 76% 25% Services & Mature stage, MIG 3, 0.11 Group Ltd 14 Distribution MBO MIG 4 Traceall Global Mar- Ltd1 200 - 0% 100% MIG 3 15 Write-down Oct- Software & 76%-100% MIG, Lydia Ltd (trading 117 - 0% 100% Computer Early Stage, MIG 3, as Motokiki)1 18 Services Pre-Revenue MIG 4 Dec- Later Stage, MIG, D Mack Ltd1 271 - 2.8 100% 0% Automobiles & Pre-profit MIG 3, 13 Parts expansion MIG 4 Apr- Software & MIG, Lending Works 349 -- 0% 100% Computer Early Stage, MIG 3, Ltd1 18 Services Pre-Revenue MIG 4
30 Reprinted for the use of Maven Capital Partners Maven Income and Growth VCT and Maven Income and Growth VCT 5
Table 12: Maven Income and Growth VCT 5 Unquoted portfolio analysis as at May 2020 Source Maven VCTs VCTs Loan £000 £000 Equity Multiple Valuation Valuation
Investee name method** investment equity held Date of first Date co-investing? Current Value Value Current Percentage of Percentage Industry sector Financing stage Financing Amount invested Amount Jun- Later Stage, Top Ten Holding 350 -- 0% 100% Media Pre-profit Write-down PLC1 00 expansion 76%-100% Aug- Health Care Tissuemed Ltd1 71 - 0% 100% Equipment & Mature stage, Write-down 00 Services MBO 76%-100% VSA Capital Jun- (formerly Third 510 10 0% 100% General Early Stage, Write-down Quad)1 05 Financial Pre-Revenue 76%-100% Jun- MIG, Space Student - 21 5.6% 90% 10% Support Mature stage, Cost MIG 3, Living Ltd1,2 11 Services MBO MIG 4 TOTALS £21.8m £18.9m 0.86 1Accounts prepared in accordance with small companies exemption. 2Company in administration 3Company has not produced it's first published set of accounts. The financing stage (column K) for the early-stage investments has been set to "Early Stage, Pre-Revenue", however, these companies have generated revenue apart from Altra Consultants The current value of Space Student Living is based on the recovery proceeds from litigation *The valuations of ebb3, Bright Network and BioAscent Discovery are based on a multiple of revenue
Reprinted for the use of Maven Capital Partners 31 Maven Income and Growth VCT and Maven Income and Growth VCT 5
Table 13 (1 of 3): Matrix of individual responsibilities - Maven Capital Partners Source: Maven Octr 2020 Bill Stella Ewan Julie Alan David Ryan Luke Name Nixon Panu McKinnon Glenny Robertson Milroy Bevington Matthews Central Main Location National London Edinburgh Glasgow Central Scotland Manchester Reading Scotland VCT RELATED WORK Deal origination 10% 30% 20% 35% 30% 35% 10% 50% General enquiries 0% 0% 0% 0% 0% 0% 0% 0% New deal doing 15% 30% 20% 30% 40% 35% 5% 45% Investee board 0 2 3 2 3 5 1 1 seats No. Sitting on Boards/ 5% 5% 10% 10% 15% 15% 5% 5% Monitoring Fund raising 10% 5% 10% 0% 0% 0% 0% 0% Internal issues 20% 10% 10% 2% 5% 5% 0% 0% Exits 10% 20% 5% 3% 5% 5% 5% 0% NON VCT WORK (i.e. regional fund mandates, buyout fund) Non-VCT work 30% 0% 25% 20% 5% 5% 75% 0% TOTAL 100% 100% 100% 100% 100% 100% 100% 100% Years in venture capital 29 19 14 9 15 15 13 12 Years involved with VCTs 19 15 11 9 7 13 13 2 Years with current team 19 15 11 9 7 13 13 2
Table 13 (2 of 3): Matrix of individual responsibilities - Maven Capital Partners Source: Maven Octr 2020 Michael Michael Melanie Andrew Jeremy James Catrin David Name Dickens Vassallo Goward Bruce Thompson Darlington Dilloway Nixon Main Location North East North East Bristol Manchester Manchester Manchester Reading Newcastle VCT RELATED WORK Deal origination 15% 20% 40% 0% 5% 3% 50% 35% General enquiries 0% 0% 0% 0% 0% 0% 0% 0% New deal doing 15% 15% 40% 0% 10% 2% 50% 30% Investee board 1 1 2 3 3 1 0 1 seats No. Sitting on Boards/ 5% 10% 5% 20% 10% 5% 0% 5% Monitoring Fund raising 0% 0% 0% 0% 0% 0% 0% 0% Internal issues 0% 0% 5% 0% 0% 0% 0% 0% Exits 0% 0% 5% 0% 0% 0% 0% 0% NON VCT WORK (i.e. regional fund mandates, buyout fund) Non-VCT work % 65% 55% 5% 80% 75% 90% 0% 30% TOTAL 100% 100% 100% 100% 100% 100% 100% 100% Years in venture capital 9 11 17 16 7 9 1 15 Years involved with VCTs 4 7 4 1 3 3 1 2 Years with current team 4 4 4 1 3 3 1 2
Table 13 (3 of 3): Matrix of individual responsibilities - Maven Capital Partners Source: Maven Octr 2020 Mike Andrew Karen De Sajid Graham Trisha Demetri Gareth Alexander Name Collis Symmonds Meza Sabir Welsh Reay Theofanou Price Sleigh Main Location National London Manchester Birmingham Edinburgh London Birmingham Bristol London VCT RELATED WORK Deal origination 5% 10% 5% 15% 0% 30% 15% 40% 50% General enquiries 0% 0% 0% 0% 0% 0% 0% 0% 0% New deal doing 5% 10% 5% 10% 5% 30% 10% 45% 45% Investee board 3** 6** 0 0 4** 0 0 3 2 seats No. Sitting on Boards/ 25% 50% 5% 0% 55% 30% 0% 15% 5% Monitoring Fund raising 0% 0% 0% 0% 0% 10% 0% 0% 0% Internal issues 5% 0% 0% 0% 5% 0% 0% 0% 0% Exits 10% 10% 5% 0% 5% 0% 0% 0% 0% NON VCT WORK (i.e. regional fund mandates, buyout fund) Non-VCT work % 50% 20% 80% 75% 30% 0% 75% 0% 0% TOTAL 100% 100% 100% 100% 100% 100% 100% 100% 100% Years in venture capital 19 14 2 2 20 7 2 10 9 Years involved with VCTs 19 14 2 2 2 2 2 2 1 Years with current team 19 14 2 2 2 2 2 2 1
32 Reprinted for the use of Maven Capital Partners