Praetura Growth VCT plcKey Information Document PurposeIntended retail investor: The Company is intended for UKtax-resident retail investors with sufficient income and capital This document provides you with key information about available to commit to invest for a recommended holding this investment product. It is not marketing material. The period of not less than five years and who can afford to lose information is required by law to help you understand the their entire investment. Shareholders may be entitled to nature, risks, costs, potential gains and losses of this product income tax relief, but must hold the Shares for a minimum of and to help you compare it with other products.five years to obtain this tax relief. Investment should be made only if the Investor is able Productto understand and tolerate the risks associated with VCTinvesting. Name: Praetura Growth VCT plcProduct term: The Company does not have a fixed life Investment Manager to the Company: Praetura Venturesand therefore has no maturity date. However, given the LTDrequirement to hold Shares in the Company for a minimum Phone: 0161 250 3838 of five years to retain the 30% upfront income tax relief, the Website: www.praeturainvestments.com recommended holding period for the purposes of this KID is Competent authority: Financial Conduct Authority ten years. Furthermore, you cannot be forced to redeem your (FCA No. 817345) Shares unless the Company is wound up. Date of production of this document: This key information document (“KID”) has been approved by Praetura for publication on 8 November 2024What are the risks and whatcould I get in return? You are about to purchase a product that isLower RiskHigher Risk not simple and may be difficult to understand1234 567 What is this product? Praetura Growth VCT plc (the “Company”) is incorporated and registered in England and Wales as a public company limited by shares with registered number 14525115. The Company is a Venture Capital Trust (“VCT”). The Ordinary Shares of the The risk indicator assumes you keep the product for ten years. Company are listed on the premium segment of the Official The actual risk can vary significantly if you cash in at an early List of the “Financial Conduct” Authority (“FCA”) and admitted stage and you may get back less. You may not be able to sell for trading on the Main Market of the London Stock Exchange. your investment easily or you may have to sell at a price thatsignificantly impacts on how much you get back. Objectives: The Company aims to provide funding to growing small and medium-sized enterprises (“SMEs”) in the UK, in The summary risk indicator above is a guide to the level of order to generate positive returns for Investors, initiallyrisk of this product compared to other products. It shows through capital growth and then later through annual tax-free how likely it is that the product will lose money because dividends. of movements in the markets, changes in interest rates orbecause we are not able to pay you. The Company aims to maintain its VCT status to enable Investors to benefit from the associated tax reliefs. To achieve We have classified this product as 6 out of 7, which is the this, the Company shall invest in companies as allowed under second-highest risk class. The principal of this product is not Venture Capital Trust legislation which, in particular, must beguaranteed. UK-established companies, of a limited size and that carry out a qualifying trade. The Company targets direct investments This product does not include any protection from future in shares issued by UK unquoted companies and in units market performance so you could lose some or all your of permitted investment funds, including interest-bearing investment. money market open-ended investment companies. The initial proceeds of the offer may also be invested in a portfolio of If the Company is not able to pay you what is owed, you could other listed equity and fixed income and other securities, lose your entire investment. including UK government bonds, highly rated corporateIt is likely that the Company should be considered as having a bonds and cash deposits. The Company intends but cannotmaterially relevant liquidity risk because, notwithstanding that guarantee to pay a regular annual dividend commencingit is admitted to trading on a regulated market, the liquidity in 2027. From then on, the Company expects to achieve andepends only on the availability of buyers and sellers on the average dividend payment equivalent to between 4 and 6secondary market. percent of the prevailing NAV per Share per annum (including the 2027 dividend) over the rest of the life of the Company. Performance What are the risks and what could I get in return? What could affect my return negatively? The main factors that will affect the performance of the The VCT invests in smaller unquoted companies which are Company are the ability of the Investment Manager to illiquid. Specific factors that may negatively impact capital select unquoted companies in which the Company invests;growth and dividends are that these companies may have the performance of the unquoted companies held within limited product lines or resources, be early stage and may the portfolio and the ability to realise portfolio companies be more susceptible to political, exchange rate, taxation, profitably; and the ability of the Board to oversee the Companyregulatory and macroeconomic changes. Furthermore, the and its objectives.more companies in the portfolio which are impacted by suchfactors, the greater the impact there will be on the financial Our forward-looking ex-ante moderate performance scenario performance of the VCT and therefore the returns to investors. return is 6.47% per annum over the recommended holding Another factor that may negatively affect returns for the VCT period of ten years. We have used this ex-ante return to model would be the market for shares. It is unlikely there will be a the reduction in yield in our cost calculations below. liquid market and it may prove difficult for investors to realise VCT shares are usually illiquid and must be held for five their investment immediately or in full. A general factor that years to retain the income tax relief available on your initialmay affect returns negatively would be poor performance of subscription. The recommended holding period is ten years. the UK equity markets. Since the Company is young, there is a lack of data that objectively illustrates performance. Please note, there is also no relevant index or benchmark for the Company.What could happen under severely adverse The VCT tax reliefs are dependent on individual circumstances market conditions? and anyone that is unsure as to whether they will be able to The Company may experience a high proportion of realised take advantage of any such reliefs should seek independent losses within the portfolio during periods of stress, which financial advice before investing. could result in you losing all your investment. VCT investments are high risk but also come with the potential of high return by way of value growth and income returns in and from the portfolio, alongside making profitable What happens if the Company is unable to pay out? realisations. Specific factors that may positively impact capitalThe value of the Shares and the income derived from them is growth and dividends are the number of successful companiesdependent on the performance of the Company’s underlying within the portfolio, and the level of that success. Generalinvestments and can fluctuate. If the Company is unable to pay factors that may affect positive returns for the VCT would beout, you might lose all of your investment. As a Shareholder an extended period of UK economic growth and fiscal stability.of the Company, you would not be able to make a claim Day to day, the Company’s correlations to UK markets areto the Financial Services Compensation Scheme about the quite low but we would also expect to see improvementsCompany in the event that you lose money on the Shares in in valuations in the UK equity markets to correlate withthe Company. There is no guarantee scheme in place that may improvements of the valuations in the underlying holdings,offset all or any of this loss. particularly during larger upward equity market movements. Scenarios If you cash in after 1 year If you cash in after 5 yearsIf you cash in after 10 years Total Costs £650.00 £1,931.71£3,297.18 Impact on return (RIY) by year 6.50% 3.42%2.51% The Reduction in Yield (RIY) shows what impact the total costs you pay will have on the investment return you might get. The total costs consider one- off, ongoing and incidental costs. The amounts shown here are the cumulative costs of the product itself for different holding periods. The figures assume you invest £10,000. The figures are estimates and may change in the future. The person selling you or advising you about this product may charge you other costs. If so, this person will provide you with information about these costs and show you the impact that all costs will have on your investment over time. What are the costs? The table below shows the impact each year of the different types of cost on the investment return that you might get at the end of recommended holding period, and the meaning of the different cost categories. The impact of the costs you pay when making your One-off costsEntry costs 0.30% investment. The entry cost is 3% of the investment amount.This is the most you will pay, and you could pay less. The impact of the costs of exiting your investment when it Exit Costs 0.00%matures. See the ‘How do I sell my Shares?’ section below. Recurring Portfolio TransactionThe impact of the costs of Praetura Ventures buying and0.00% Costs Costsselling underlying investments for the product. The maximum impact of costs each year for running the Other Recurring Costs 3.50%Company. Incidental Performance Fee0.00% CostsCarried Interest 0.00% Not applicable. How long should I hold it and can I take money out early? Recommended holding period: 10 years Other relevant information This is a long-term investment with a recommended holding This document is published solely for informational purposes period of ten years. If you invest, you should be prepared to and is not to be construed as a solicitation or an offer to hold your Shares for a minimum of five years to be entitled tobuy or sell any securities, or related financial instruments. It income tax relief. If you decide to sell your Shares before then, does not constitute an investment recommendation as such you will be required to repay to HMRC all of the 30% upfront term is defined in Regulation (EU) 596/2014 or a personal income tax relief you have claimed. recommendation as such term is defined in the Handbook of the Financial Conduct Authority (“FCA”), nor does it take into account the particular investment objectives, financial How do I sell my Shares? situations or needs of individual Investors. This document is not a prospectus and any decision to engage in an investment The Company may operate a buyback policy from time to time, activity as such term is defined in the FCA’s Handbook should to buy back the Company’s Shares in the market at a price which be based solely on the Company’s offering documentation will be at a 5% discount to the most recently announced net which includes inter alia the Company’s Prospectus which asset value (“NAV”) per share, in each case as reported from has been approved by the “FCA”. The cost, performance and time to time, less transaction costs payable to market makers risk calculations included in this KID follow the methodology and stockbrokers, up to a maximum annual number equivalentprescribed by EU legislation. The data above is not derived from to 14.99% of the total number of issued Shares. Operation past performance or from any relevant benchmark or proxy and of this policy will be subject to applicable legislation and the is an estimation of the risks and returns of the Company on an Company having sufficient liquidity. Accordingly, it is unlikely ex-ante basis. VCTs are required to invest in smaller, younger there will be a liquid market, as there is a limited secondarycompanies that can carry higher risk, albeit with the prospect of market for shares in VCTs and Investors may find it difficult to higher but more volatile returns. Please note that it cannot be realise their investments.guaranteed that the companies invested in by the Company will be qualifying companies or that the Company will maintain its qualifying status as a Venture Capital Trust. How can I complain? Further information on the Company’s investment strategy The Manager has procedures in accordance with the FCA Rules and other relevant documents, such as the Company’s most for complaint handling. Details of these procedures are available recent Prospectus, are available on the Manager’s website at from the Manager on request. If the Investor is dissatisfied with www.praeturainvestments.com. You are recommended to the Manager’s final response, the investor is entitled to refer its read the latest Prospectus and, in particular, the risk factors complaint to the Financial Ombudsman Service. contained therein, before making an investment decision and Complaints should be addressed to: Compliance Team, Praetura be comfortable, or confirm with your independent financial Ventures, Bauhaus, Quay St, Manchester, M33GY adviser if applicable, that you have the expertise, experience and knowledge to properly understand the risks. If you have any E: complaints@praetura.co.uk questions, or require any further information, please send an t: 0161 250 3838. email to investors@praetura.co.uk. The distributor will provide you with additional documents where necessary. You may incur other costs such as platform fees when subscribing for Shares in the Company.