Octopus Apollo VCT Leaps Forward with a £75 million Offer
The Octopus Apollo Venture Capital Trust has just rolled out a hefty offering, up to £75 million in total (£50 million base plus a £25 million overallotment). That’s a big splash in the world of VCTs, especially for a company that’s already on a winning streak.
What’s At Stake?
- Net Asset Value (NAV) Today: £439 million
- Portfolio Size: 45 carefully curated businesses
- Investment Focus: Mature, often profitable software firms that sell to corporate customers
- 5‑Year Track Record: 49.4% total return on NAV (up to June 2024)
- Dividend Target: 5% of NAV – a steady, predictable yield for investors
Why Apollo Is a Smart Bet in a Tight Market
Investor Nicholas Hyett, Management Lead at Wealth Club, explains why Apollo’s lean, software‑centric strategy is a breath of fresh air in today’s high‑interest, high‑pressure landscape:
“Rising interest rates have been brutal for companies that relied on steady investment inflows to speed up growth. That cash crunch has drained venture capital where the returns are still uncertain.”
“Apollo’s portfolio is different. Software is capital‑light, meaning it can survive and even thrive without the constant cash injection that start‑ups often need. Plus, hitting corporate customers gives these companies a kind of loyalty that consumer‑driven businesses simply don’t get.”
“Sure, the boom years might make these businesses seem a little dull. But when the market turns, that ‘boring’ quality goes from a drawback to a hidden gem.”
Why It Works
- Low Capital Expenditure: Software companies don’t need big piles of cash to scale – they grow by selling more licenses.
- Robust Customer Base: Corporate clients pay for reliability and long‑term value, making revenue more predictable.
- Resilience in Volatile Markets: When funding dries up, these firms keep moving, which gives Apollo a cushion against the new “bust” that’s so common in tech.
Bottom Line
With a solid track record, a clear focus on profitable, capital‑light software, and a dividend policy that rewards investors, Apollo’s newly announced offering is a compelling opportunity for anyone looking to ride the wave of mature tech.”
Stay tuned – you won’t want to miss the next update on this exciting VCT.
