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Can a private investor invest in Venture Capital Funds?

24 November 2021

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Question by Bernadette

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


Answered by Joshua Gerstler

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

Joshua Gerstler

Chartered Financial Planner

I have been working in Financial Services for over 16 years. I started out at Deloitte where I trained and qualified as a Chartered Accountant before moving to Financial Advice/Planning at The Orchard Practice in 2011.