| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 138.66 | 212 |
| Intrinsic value (DCF) | 19.81 | -55 |
| Graham-Dodd Method | 0.16 | -100 |
| Graham Formula | n/a |
Maven Income and Growth VCT 3 PLC is a UK-based venture capital trust (VCT) specializing in early-stage and development capital investments in smaller unquoted and AIM-listed companies with strong growth potential. Operating under the Financial Services sector, the fund focuses on long-term capital appreciation by investing up to £1 million annually in individual businesses, while maintaining a diversified portfolio with no single investment exceeding 15% of its assets. The fund actively engages with its investee companies, often securing Non-Executive Board seats to drive strategic growth. Maven Income and Growth VCT 3 PLC avoids hostile takeovers and prefers later-stage private companies, offering a unique proposition in the UK's venture capital landscape. With a market cap of approximately £63.97 million, the fund appeals to investors seeking exposure to high-growth SMEs while benefiting from VCT tax advantages.
Maven Income and Growth VCT 3 PLC presents an attractive option for investors seeking tax-efficient exposure to UK small-cap growth companies, with a dividend yield supported by its 3.15p per share distribution. The fund's conservative beta of 0.17 suggests low correlation with broader market movements, potentially offering portfolio diversification benefits. However, the negative operating cash flow (-£759k) raises questions about short-term liquidity, despite a healthy cash position (£7.59m). The fund's focus on unquoted and AIM-listed companies carries inherent illiquidity risks and valuation challenges, though its disciplined investment approach (capped at 15% per holding) mitigates concentration risk. The absence of debt strengthens its balance sheet, but investors should weigh the higher risk profile of venture capital against the potential tax benefits.
Maven Income and Growth VCT 3 PLC competes in the specialized UK venture capital trust market, differentiating itself through its strict investment criteria and hands-on approach with portfolio companies. The fund's competitive advantage lies in its dual focus on both unquoted and AIM-listed smaller companies, allowing for a balanced risk profile compared to pure early-stage VCTs. Its policy of taking board seats provides active governance oversight uncommon among passive VCTs. The £1 million per company annual investment limit positions it as a mid-sized player, targeting meaningful but not dominant stakes. Compared to generalist VCTs, Maven's sector-agnostic but stage-specific focus (prioritizing later-stage private companies) reduces some early-stage risk while maintaining growth potential. However, its smaller scale versus industry leaders may limit deal flow access, and its avoidance of public-to-private transactions narrows its opportunity set. The fund's performance ultimately depends on the UK small-cap ecosystem's health and the continued government support for VCT tax incentives.