Establishes two new venture capital trusts.
London-based Ingenious has launched two new live entertainment venture capital trusts to invest in companies producing and promoting new and established live events.
The venture capital trusts (VCTs), called Ingenious Live VCT 1 and 2, respectively, are jointly targeted to raise up to £50 million ($95.1 million) to invest. The companies in which the funds will be invested will produce and promote events such as concerts, festivals, exhibitions, theatrical shows, conferences, trade fairs or sporting events, according to a statement issued today (Nov. 13) by Ingenious.
The investee companies will work with experienced promoters and will secure significant downside protection through performance warranties or similar contractual arrangements which will generate revenues equivalent to at least 70% of each VCT's investment, the statement says. The VCTs will be managed by Ingenious, which advises and invests solely in media and entertainment.
"As a component of media, the live sector is becoming ever more important as consumers seek special and unique shared experiences to augment their increased consumption of digitally delivered content which they experience in a more insular fashion," says Patrick McKenna, chairman of Ingenious.
The company notes that in 2004-2005, annual U.K. household spending on theatre, concerts and shows increased to an estimated £1.46 billion ($2.78 billion), up 50% from the previous year.
The announcement follows the launch last year of Ingenious Music VCT 2, which, together with Ingenious' first Music VCT, raised more than £40 million ($76.1 million). Ingenious claims that the trusts are now largest specialist funds of their type listed on the London Stock Exchange.