Octopus Apollo VCT (OAP3) Price & Analysis

Octopus Apollo VCT plc functions as a venture capital trust, primarily providing development and expansion capital to smaller, privately held companies. Its investment focus is on small and medium-sized enterprises (SMEs) located across the United Kingdom. The fund typically makes debt investments ranging from £1 million ($1.64 million) to £2 million ($3.29 million) per company. Its core investment approach involves secured loans, complemented by various unlisted instruments such as ordinary and preference shares, loan stocks, and convertible securities. Investments are generally held for a duration of three to seven years, with a trade sale being the preferred exit strategy. To ensure governance and oversight, the fund aims to appoint either a director or a formal observer to the board of each company it invests in. Any uncommitted funds are held in cash and money market instruments. Annually, the fund limits its investment in any single company to a maximum of £1 million ($1.64 million) and typically allocates no more than 15 percent of its total assets, at cost, to one particular entity.