PXN Investments has reopened fundraising for its PXN Growth Venture Capital Trust (VCT), with a £10m offer and a further £10m over-allotment facility, alongside plans for a proposed 5p per share special dividend.
The dividend is expected to be paid in January 2027, following profitable exits from Manchester-based software business Street Group and technology company AccessPay.
Street Group delivered an investment multiple of 4.4x, while AccessPay returned 1.24x. PXN said both exits took place earlier than initially expected, allowing it to propose the special dividend less than three years after the VCT launched in April 2024.
The proposed performance-led payment would bring forward shareholder distributions ahead of the fund’s planned regular dividend programme. From the end of the 2027 financial year, the VCT is targeting annual dividends equivalent to 4% – 6% of its prevailing net asset value per share, subject to board approval and available distributable reserves.
PXN Growth VCT generated a net asset value total return of 10.4% from its launch in April 2024 to July 2026. PXN said its analysis placed the fund among the better-performing within the market, compared with 38 peer VCT funds over the same period, although differences in reporting periods and calculation methods mean the comparison is not directly like-for-like.
The wider portfolio includes Glasgow-based digital healthcare business Phlo, and fitness technology company Magic AI. Phlo was recognised at GP Bullhound’s 2026 Northern Tech Awards, while Magic AI has more than tripled its annual revenue for two consecutive years and was named the UK’s fourth fastest-growing hardware company by The Sunday Times.
The fund specifically focuses on high-growth businesses across Northern England and Scotland, seeking to provide investors with geographic diversification beyond London and the South East. As of 31 July 2026, approximately 64% of its identifiable UK portfolio companies were based outside London and the South East, compared with around 34% across the 10 largest VCTs analysed by PXN.
Caroline Flagg, deputy managing director of PXN Investments, said: “Tax relief matters, but the underlying investments must be the focus when selecting a VCT. Street Group and AccessPay have delivered profitable exits early in the PXN Growth VCT’s life, allowing us to propose a special dividend ahead of our original timetable.
“For advisers, there is also an opportunity to look more closely at where their clients’ VCT money is invested. Holding several funds does not necessarily mean getting a broad geographic spread.”
She added: “The North and Scotland are producing exceptional growth businesses, and our early exits demonstrate the potential of that opportunity. Investors risk missing out if their portfolios keep backing the same postcode.”
