| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Mobeus Income & Growth 4 VCT plc (MIG4.L) is a UK-based Venture Capital Trust (VCT) specializing in investments in small to medium-sized unquoted companies, primarily through management buyouts. The fund focuses on sectors such as media & entertainment, commercial & professional services, and information technology, typically acquiring majority stakes structured as a mix of equity and loan financing. Listed on the London Stock Exchange, MIG4.L offers investors exposure to high-growth potential UK SMEs while benefiting from tax advantages associated with VCTs. With a market capitalization of approximately £75.5 million, the trust is part of the broader Financial Services sector, specifically within the Asset Management - Income industry. Its investment strategy targets capital appreciation and income generation, making it an attractive option for investors seeking diversified exposure to the UK's private equity landscape.
Mobeus Income & Growth 4 VCT plc presents a niche investment opportunity for those seeking tax-efficient exposure to UK small and medium-sized enterprises (SMEs). The trust's focus on management buyouts in high-growth sectors like media, IT, and professional services offers potential for capital appreciation. However, the illiquid nature of its unquoted investments and reliance on the UK economic environment pose risks. The trust's low beta (0.181) suggests lower volatility relative to the market, but its negative operating cash flow (-£2.4 million) raises questions about short-term liquidity. The dividend yield, at 8p per share, may appeal to income-focused investors, but sustainability depends on successful exits from portfolio companies. Investors should weigh the tax benefits against the inherent risks of private equity investing.
Mobeus Income & Growth 4 VCT plc operates in a specialized segment of the UK investment market, competing with other VCTs and small-cap private equity funds. Its competitive advantage lies in its sector-specific focus and hands-on approach to management buyouts. The trust's strategy of combining equity with loan financing provides flexibility in structuring deals, potentially offering better terms than pure equity investors. However, its small size (£75.5 million market cap) limits its ability to compete for larger deals against bigger private equity firms. The VCT structure provides tax advantages that mainstream private equity funds cannot match, but this comes with regulatory constraints on investment size and holding periods. Performance is heavily dependent on the UK SME ecosystem, making it more geographically concentrated than larger, diversified asset managers. Its negative operating cash flow suggests potential challenges in maintaining dividend payouts without successful exits from portfolio companies.