Can a private investor invest in Venture Capital Funds?

24 November 2021

Question by Bernadette

Can a private investor invest in Venture Capital Funds? Are their fees high?


Answered by Boring Money

Hi Bernadette,

Yes, private investors can invest in Venture Capital Funds.

Fees for VCTs do tend to be higher than for more traditional investments.

Annual Management Charges tend to range between 1.75% and 3% per annum.

In addition, there are often Initial Charges of as much as 5%.

Often you can get a discount on the fees if your Financial Adviser sets the investment up for you.

There are also lots of other pros and cons of VCTs and they tend to be for "sophisticated" investors.

I hope that helps!

Josh

Answered by

Boring Money