BSC

British Smaller Companies Vct2 PLC

Financial Services First-pass screen £195m

420/1000 Overall fit

AI beneficiary 35% 45

Operating leverage 25% 30

Valuation 25% 40

Downside protection 15% 60

First-pass take

VCT holding 35+ UK tech SMEs; some have explicit AI focus (Xapien, Stormharvester) but fund strategy is broad innovation, not AI-leveraged. Minimal operating leverage (1.95% fixed charges). Recent NAV returns weak (2.4% p.a. 2025; 6.4% 10-year). Fund structure fundamentally misaligns with equity operating-company strategy.

Flags

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