Venture & Growth Capital (LTAF)

Built as an evergreen Long-Term Assets Fund (LTAF), the Venture & Growth Capital Fund is structured to enable effective access to the asset class. It is actively managed and seeks to invest in a diversified portfolio of direct and indirect venture capital investments.

For further information on the risks and risk profiles of our funds, please refer to the relevant KIID and Prospectus.

Investment risk: The value of an investment and any income from it can go down as well as up and can fluctuate in response to changes in currency and exchange rates. Investors may not get back the original amount invested. Past performance is not a guide to future returns.

Market risk: VGC investments are high-risk due to their limited operating histories and unproven technologies or business models. They face market risks from rapid changes in technology, consumer preferences, competition, and regulations. They often lack robust internal controls and are not financially self-sustaining at the time of investment, requiring multiple financing rounds. While they offer potential for significant gains, they also carry a high risk of substantial losses, with no guarantee of market success. These risks are generally higher than those of more mature public companies.

Financial risk: VGC investments are prone to financial difficulties such as cash flow issues, high debt, and insufficient revenue. They often have limited access to capital and revenue streams, making them vulnerable to market shocks. Poor financial viability can lead to losses, negatively affecting performance. 

Operational risk: To achieve projected revenues, VGC investments may be required to rapidly implement and improve operational, financial and management control systems, while maintaining effective cost controls. Success of growth plans depends on ability to execute business plans effectively and address scalability, production capacity, and supply chain management. Limited operating histories make it hard to predict a company's ability to sustain and grow revenues. Financial results depend on market identification, strategic alliances, R&D progress, proprietary rights protection, and competition. There's no guarantee these investments will achieve significant revenues or profitability.

Technology risk: Investing in the technology sector carries risks related to intellectual property (IP) - obtaining, enforcing, or protecting rights. Delays or challenges in patent production can hinder innovation. Loss or unauthorized disclosure of proprietary information can compromise strategic positions. High research and development costs, IT infrastructure disruptions, data breaches, and software issues can negatively affect operations and revenue. 

Exit opportunities: The availability of exit opportunities, such as IPOs or M&As, depends on economic conditions, company valuations, technology perceptions, and financial markets. Realising investments may take time or require a value discount. 

Valuation risk: Illiquid, private assets are inherently difficult to value due to the individual nature of each asset, and as readily assessable market values are not available. Such valuations are subject to uncertainty, subjective and have increased risk that price models may be inaccurate or subject to other error. There is no assurance that the values determined will reflect the actual sales price even where a sale occurs shortly after the valuation date.

Iliquidity risk: The intended investment universe is inherently illiquid and more difficult to realise than public investments, and the Fund should not be considered suitable for investors with a short-term investment outlook. Assets may not be readily saleable and the Fund operates limited redemption arrangements. It may not be possible to realise investments in early-stage companies within a reasonable period of time or without a discount to NAV. 

ESG risk: Investing on basis of ESG factors may limit the choice of investments and performance of the Fund may be impacted (either positively or negatively). 

Dealing arrangment risk: The Fund requires investors to sign up to a Subscription Agreement, committing to subscribe an amount which will only be drawn down at the discretion of the ACS Manager and Units will only be issued to the investors based on the prevailing net asset value at that point. 

Redemption arrangments: Specific redemption arrangements are in place for this Fund, meaning there will be a significant time lag between instructions being accepted and processed and investors will bear the risk of any unit price movements in these periods. These arrangements may not fully reflect the time typically needed to sell, liquidate or close out the assets, and in exceptional circumstances the Fund can suspend all dealing until the exceptional circumstances have ceased.

Investment in unregulated collective investment schemes: Such schemes are generally considered higher risk than regulated schemes. There are limited if any, restrictions to how they are managed. They are also valued less frequently and there is a risk that any market movements will not be reflected in the daily price of the Fund and that investors may miss out on unrealised profits. Liquidity is not assured and cannot be relied upon to meet redemptions. Lack of liquidity may affect the value and lead to units being suspended. 

This summarises some of the key risks associated with the fund, this is not exhaustive. Appropriate due diligence should be undertaken prior to making any investment decisions. Prospective investors should consult the Prospectus for full information on all risks associated with this fund. 

Investment thinking that brings together the collective insight of Aviva Investors’ teams from across the globe on the key themes influencing markets.

THIS IS A MARKETING COMMUNICATION

Except where stated as otherwise, the source of all information is Aviva Investors. Unless stated otherwise any opinions expressed are those of Aviva Investors. They should not be viewed as indicating any guarantee of return from an investment managed by Aviva Investors nor as personalised advice of any nature. This document should not be taken as a recommendation or offer by anyone in any jurisdiction in which such an offer is not authorised or to any person to whom it is unlawful to make such an offer or solicitation. Portfolio holdings are subject to change at any time without notice and information about specific assets should not be construed as a recommendation to buy or sell any assets. This is a high-risk investment, and assets may take a long time to buy and sell. Only invest if you can wait (possibly several years) to get your money back. You do not have protection against poor performance.

The information within this document is based on our current understanding of taxation and is not to be construed as investment, legal or tax advice. The basis and rates of tax may change in the future.

The Aviva Investors Venture & Growth Capital LTAF is a sub-fund of the Aviva Investors LTAF ACS, an umbrella co-ownership scheme comprising different sub-funds. Each sub-fund belongs to the “Long-Term Asset Fund” category as specified in Chapter 15 of the Collective Investment Schemes sourcebook and the property attributable to each such sub-fund is managed as such.

A copy of the Prospectus and the annual and interim reports are available free of charge to Unitholders and otherwise at the discretion of the Authorised Fund Manager.

Issued by Aviva Investors UK Fund Services Limited, the Authorised Fund Manager. Registered in England No. 1973412. Authorised and regulated by the Financial Conduct Authority. Firm Reference No. 119310. Registered address: 80 Fenchurch Street, London EC3M 4AE. An Aviva company.