Investment manager Downing LLP (Downing) has decided to focus all of its ventures activities in the growing healthcare sector, building on its expertise in this area and responding to interest from investors.
To facilitate this strategic move, the company has exchanged contracts to sell its non-healthcare ventures investment business to Foresight Group Holdings Ltd (Foresight). The sale includes the transfer of the investment management contracts for Downing Ventures EIS, Downing ONE VCT plc and Downing FOUR VCT plc - except the latter’s Healthcare share class - and is expected to complete later this month.
Downing will now concentrate all of its VCT and EIS activities in healthcare ventures, retaining the management of the Healthcare share class of Downing FOUR VCT plc, as well as its Healthcare EIS Knowledge Intensive Fund.
Downing’s non-healthcare ventures investment team will transfer to Foresight, providing continuity in the investment management of the non-healthcare EIS and VCT portfolios. And to help to ensure a smooth transition for investors and advisers in the transferring VCT and EIS products, Downing will continue to provide administration services and support to Foresight for a transitional period.
Tony McGing, CEO of Downing LLP, said:
“We are focusing our ventures investment strategy on the healthcare sector, where we are building on the excellent track record of our industry-leading healthcare ventures team and plan to continue to grow our VCT and EIS funds, alongside raising dedicated capital from institutional investors.
The UK excels in the healthcare sector and we believe it offers attractive growth opportunities on the back of accelerated medical advances and investor interest due to the Covid-19 pandemic.
This strategic move to focus on healthcare is also in line with Downing’s continuing emphasis on ESG and sustainability, as we look to invest into businesses that can deliver excellent returns to investors at the same time as making a positive impact.
For VCT and EIS investors, there will be continuity in the management and administration of the transferring funds. Foresight is an experienced VCT and EIS manager, with the scale and expertise to fund and support the future growth of the businesses in the transferring VCT and EIS portfolios.”