| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | 19.42 | -66 |
Mobeus Income & Growth 2 VCT Plc (LSE: MIG.L) is a UK-based venture capital trust (VCT) specializing in investments in small to medium-sized unquoted and AIM-listed companies. The fund focuses on sectors such as Internet software, e-business, information technology, telecommunications, and media, primarily within the UK market. Mobeus adopts a structured investment approach, combining equity and loan financing, often taking majority stakes to drive growth and value creation. As a VCT, it offers tax-efficient returns to investors, making it an attractive option for those seeking exposure to high-growth private enterprises. The trust operates in the competitive asset management sector, targeting income generation through strategic investments in innovative and scalable businesses. With a market cap of approximately £55 million, Mobeus plays a niche but vital role in funding UK-based SMEs, contributing to the broader financial ecosystem.
Mobeus Income & Growth 2 VCT Plc presents a high-risk, high-reward investment proposition, typical of venture capital trusts. The fund's focus on unquoted and AIM-listed UK SMEs offers potential for significant capital appreciation, but also exposes investors to liquidity risks and market volatility. The negative revenue and net income in FY 2023 highlight the challenges of early-stage investing, though the dividend payout of 17p per share indicates an income-focused strategy. The absence of debt is a positive, but the negative operating cash flow raises concerns about sustainability. Investors should weigh the tax advantages of VCTs against the inherent risks of private equity exposure. The fund's low beta (0.196) suggests relative insulation from broader market swings, but sector-specific risks remain pronounced.
Mobeus Income & Growth 2 VCT Plc operates in a specialized segment of the UK venture capital market, competing with other VCTs and private equity funds targeting SMEs. Its competitive advantage lies in its sector-specific focus (tech, media, telecoms) and structured investment approach (equity + loans). However, its small scale (£55M market cap) limits its ability to compete with larger private equity firms for high-value deals. The fund's reliance on UK-based investments exposes it to regional economic fluctuations, though this also allows for deep local market expertise. Unlike generalist VCTs, Mobeus's concentrated sector focus could lead to higher volatility but also potential for outsized returns if its niche sectors outperform. The lack of debt on its balance sheet provides flexibility but may also indicate constrained leverage capacity compared to peers. Its tax-efficient structure is a key differentiator versus non-VCT investment vehicles, appealing to UK taxpayers seeking shelter.