THIS
ANNOUNCEMENT CONTAINS INSIDE INFORMATON FOR THE PURPOSES OF ARTICLE
7 OF THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF
UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT
2018, AS AMENDED. ON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A
REGULATORY INFORMATION SERVICE, THIS INSIDE INFORMATION IS NOW
CONSIDERED TO BE IN THE PUBLIC DOMAIN.
For immediate
release
2 December
2024
Amati AIM VCT plc
Conclusion of Strategic Review and
Change of Investment Manager
Summary
The board of directors (the "Board") of Amati AIM VCT plc (the
"Company") announces the
outcome of the strategic review process that commenced in March
2024.
Strategic
Review
The strategic review sought to address the
ongoing challenges in the AIM market and the resultant performance
issues faced by the Company. As part of its review,
the Board considered the Company's strategy from a number of points
of view, including the Company's investment management arrangements
and whether the Company's investment strategy should be expanded to
facilitate investment in a broader range of securities while
continuing to comply with the rules applicable to VCTs.
The Board has also taken into account the announcements made
as part of the Budget and the impact that these are
now expected to have on the UK economy, and on the AIM market in
particular. As a predominantly AIM VCT, the Board was keen to
preserve the positive parts of investing in AIM whilst adding an
additional flow of investment opportunities which will aim to
reverse the problems of persistent underperformance whilst keeping
a core of underlying AIM companies in the portfolio (an "AIM Plus"
strategy).
The Board would like to thank all those who
participated in the process, especially the current management team
who have been collaborative and helpful throughout the strategic
review process. As part of the review, the Board received proposals
from a number of third parties, including proposals for
a change of manager and proposals to combine its investment
portfolio with an existing VCT. These were all
carefully reviewed in great detail alongside proposals from the
Company's current manager.
Change of
Investment Manager
The Board believes that an "AIM Plus" strategy
which allows a greater degree of investment in private companies,
alongside continued investment in the AIM and AQSE markets, is key
to the Company's ability to generate improved performance and
deliver returns for shareholders. One of the major themes which
emerged during the strategic review is the difficulty, across the
VCT industry, in sourcing investment opportunities without an
extensive network. Another theme that emerged was the experience
and depth of resources that would be required to support such an
increased investment in private companies. Following careful
consideration of proposals put forwards by both the current manager
and potential new managers as to their experience, resources and
track record of managing private companies (as well as AIM
companies), the Board believes that a change of manager is required
to provide the Company with access to an increased pipeline of
investment opportunities and greater resources to support the
management of the Company's portfolio. The Board has therefore
determined that it is in the best interests of its shareholders to
change the Company's investment manager.
Accordingly, the Company has served notice to terminate the appointment of
Amati Global Investors Limited ("AGI") as the Company's investment
manager and the Board is now in advanced discussions
with Maven Capital Partners UK LLP ("Maven") in relation to the terms upon
which Maven will be appointed as the
Company's new investment manager, administrator and company
secretary.
Maven is a leading UK private equity
firm and VCT fund manager with the ability to offer a dual private
company and AIM strategy, which allows VCTs under its management to
maximise asset and sector diversification and spread investment
risk across large, broadly based portfolios. Since January 2016,
following the rule changes that required VCTs to focus on investing
in earlier stage private companies, Maven has been one of the most
active managers in the industry, completing 78 new investments in
high growth businesses active in a range of sectors such as
software, cyber security, data analytics, healthcare,
fintech/regtech and specialist engineering. Maven is one of the few
VCT fund managers with experience of both AIM and private capital
investment, and has a history of achieving positive shareholder
returns via profitable private company realisations, including the
exits announced in 2024 from Quorum Cyber (8.2x cost), Novatus
Global (4.7x cost), MirrorWeb (up to 4.5x cost) and CB Technology
(2.9x cost). Maven's investment management and support teams are
significantly larger than those of the current manager.
Further details of the terms upon
which Maven will be appointed as the Company's investment manager,
administrator and company secretary will be announced once
finalised. Maven's appointment is subject to execution of a new
investment management agreement and satisfaction of certain other
conditions.
It expected that the Company's name
and registered office address will change following Maven's
appointment becoming effective. Further details will be provided to
shareholders in due course.
Investment
Objectives and Policy
With a view to enabling the Company to benefit
from the access to investment opportunities in private companies
that Maven's appointment is expected to bring, the Board and Maven
are in advanced discussions (following similar discussions between
the Board and the current manager during the strategic review)
regarding potential changes to the Company's investment objectives
and policy that would, subject to approval by the FCA and
shareholders, enable a greater degree of investment in smaller,
unquoted UK companies with potential for growth, alongside
continued investment in companies quoted on AIM and AQSE (an "AIM
Plus" strategy). The Board expects to provide shareholders with
further details of any proposed changes to the investment
objectives and policy, and the resulting "AIM Plus" strategy, in
due course. Shareholders will be asked to approve the changes to
the Company's investment objectives and policy before any such
changes are adopted.
Enquiries:
Fiona Wollocombe, Chair
Amati AIM VCT plc
Email:
AmatiAIMVCTChair@amatiglobal.com
Douglas Armstrong
Dickson Minto Advisers
Financial Adviser to the Company
Telephone: 020 7649 6823
Important
Information
This announcement is released by the Company and
the information contained within this announcement is deemed by the
Company to constitute inside information for the purposes of
Article 7 of the UK version of the EU Market Abuse Regulation
(Regulation (EU) No.596/2014) which forms part of UK law by virtue
of the European Union (Withdrawal) Act 2018, as amended. Upon the
publication of this announcement via a Regulatory Information
Service, such information is now considered to be in the public
domain.
Legal Entity
Identifier (LEI): 213800HAEDBBK9RWCD25