REG - Amati AIM VCT PLC - Conclusion of Strategic Review & Change of Manager

Amati AIM VCTAnnouncement

02/12/2024 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241202:nRSB2630Oa&default-theme=true

RNS Number : 2630O  Amati AIM VCT PLC  02 December 2024

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

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCFZMZMNLZGDZM