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VCT market sees fundraising freeze ahead of rule change

Changes in VCT legislation will create a gap in SME financing and threaten the deal flow for mid-market firms, warns BVCA

Our story in August warned of the dangers of the new legislation
Our story in August warned of the dangers of the new legislation

Mid market buyout firms could see their deal flow disrupted once changes to the type of deals venture capital trusts' can participate in come into force, the British Venture Capital and Private Equity Association has warned.

The changes, which were first reported by Financial News in August, will prevent VCTs from carrying out management buyouts or follow on acquisitions. The legislation will be implemented in autumn in order to comply with state-aid regulations set by the European Commission.

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