Conclusion of Strategic Review & Change of Manager
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
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