Ingenious Live VCTs announced today that they have raised £18,485,690 to invest in the live entertainment sector, making it one of the largest specialist VCT funds launched in the 2006/7 tax year. They have also confirmed an agreement with The Rival Organisation to co-promote a number of open air picnic concerts at stately homes in 2008, the VCTs' third deal since the fund launched in November 2006. The Rival Organisation is one of the main players in the open air concert market and last year organised a successful series of concerts at Petworth (Sussex), Blickling Hall and Holkham Hall (Norfolk) with artists such as Girls Aloud, Status Quo, Peter Gabriel and Madness.
The agreement will mean that Ingenious Live VCTs will provide funding for a number of open air concerts in 2008 and back The Rival Organisation's plan to develop new concert venues across the UK.
Ingenious Live VCT 1 & 2's previous investments include the Underage and Field Day festival in London in August, and the Knowsley Hall Music Festival, which took place in Liverpool in June, headlined by The Who and Keane.
Ingenious Live VCTs invest in the live events sector targeting concerts, festivals, conferences, trade fairs, exhibitions, sporting events and theatre. The investment comes at a time when there is significant growth in the UK live events market as household spending continues to increase in this sector. In 2004 to 2005 annual UK household spending on theatre, concerts and shows increased to an estimated £1.46 billion, up 50 per cent on the previous year¹.
¹ Expenditure and Food Survey 2004/5 published by The Office for National Statistics
Duncan Reid, Commercial Director of Ingenious, said:
"The Rival Organisation has an established track record of delivering commercially successful open air concerts and we are pleased to support its 2008 summer schedule and the roll out of the format to new venues next year."
About Ingenious
Ingenious, which was founded in 1998 by Patrick McKenna, former Head of the Media and Entertainment Group at Deloitte and Touche and chairman and CEO of the Really Useful Group, is a specialist media investment and advisory group with six principal operating subsidiaries; Asset Management, Consulting, Corporate Finance, Investments, Securities and Ventures.
As the market leader in media investment and strategy, Ingenious provides the full range of services to companies in the media sector, from strategic and corporate finance advice to private equity funding, as well as providing innovative investment solutions for the private investor.
About Ingenious Ventures
Ingenious Ventures is the private equity arm of Ingenious, which has been involved with the structuring, promotion and management of investments across the entertainment industry since its formation in 2000. Live events based investments include Cream, the award winning team behind dance music festival Creamfields now in its 10th year, and Simon Fuller's 19 Entertainment. 19 Entertainment is a music, TV and live events company responsible for creating the worldwide hit formats Pop Idol and American Idol.
Besides Ingenious Live VCTs (Ingenious Live VCT 1 plc and Ingenious Live VCT 2 plc), the division also manages Ingenious Music VCT plc and Ingenious Music VCT 2 plc, which raised a total of approximately £40 million. Recent investments include UB40, The Prodigy and Travis.
About Venture Capital Trusts (VCTs)
Provided that shares in a VCT are held for at least five years, qualifying investors receive income tax relief at the rate of 30% on the amount subscribed for VCT shares up to a maximum of £200,000 in any one tax year. Dividends and gains on the disposal of Shares are currently exempt from tax in respect of investments not exceeding £200,000 in any one tax year. Dividends and gains on the disposal of Sahres are currently exempt from tax in respect of investments not exceeding £200,000 in any one tax year.
Andrew Reid/Michelle James
Fishburn Hedges
Tel: 020 7839 4321