| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 68.97 | 47 |
| Intrinsic value (DCF) | 24.58 | -47 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Foresight Enterprise VCT Plc (FTF.L) is a UK-based venture capital trust managed by Foresight Group, specializing in investments in unquoted companies across high-growth sectors such as technology, media & telecommunications, industrials & manufacturing, healthcare, business services, and consumer & leisure. Listed on the London Stock Exchange, the trust primarily targets opportunities within the United Kingdom, deploying capital into a diversified mix of securities, including ordinary and preference shares, loan stock, convertible securities, and fixed-interest instruments. With a market capitalization of approximately £153.9 million, Foresight Enterprise VCT Plc plays a crucial role in funding innovative SMEs, offering investors exposure to early-stage ventures while benefiting from tax advantages under the UK's Venture Capital Trust scheme. The trust's disciplined investment approach and sector diversification make it a compelling option for investors seeking growth-oriented private market exposure within a regulated framework.
Foresight Enterprise VCT Plc presents an attractive proposition for investors seeking tax-efficient exposure to UK-based early-stage companies. The trust's diversified portfolio across high-growth sectors mitigates concentration risk, while its strong net income of £6.22 million and consistent dividend payout (3.3p per share) underscore financial stability. However, the inherent risks of venture capital investing—including liquidity constraints, valuation uncertainties, and sector-specific volatility—warrant caution. The trust's low beta (0.079) suggests minimal correlation with broader equity markets, which may appeal to diversification-focused investors. With no debt and £24.8 million in cash reserves, Foresight maintains a robust balance sheet to support follow-on investments. The primary risks include reliance on UK economic conditions and the performance of unquoted holdings, which lack transparent pricing mechanisms.
Foresight Enterprise VCT Plc differentiates itself through its sector-focused expertise and hands-on portfolio management under Foresight Group, a well-established UK asset manager. Its competitive edge lies in accessing niche opportunities in technology and industrials, where proprietary deal flow and local market knowledge enhance investment selection. Unlike traditional private equity funds, the VCT structure offers retail investors rare access to early-stage ventures with tax benefits, a unique selling point in the UK market. However, the trust faces competition from larger VCTs with broader geographic mandates and more substantial resources for due diligence. Its focus on unquoted securities, while potentially lucrative, introduces illiquidity risks absent in publicly traded alternatives. The trust's zero-debt policy and cash-heavy position provide flexibility but may also indicate conservative deployment strategies compared to peers leveraging moderate leverage for higher returns. Performance hinges on Foresight Group's ability to identify winners in competitive sectors like tech, where scaling challenges are prevalent.