VCIT (Venture Capital Investment Trust) Establishment
What is a venture capital investment trust?
- Venture capital investment trust is a capital market institution that is established or transformed to issue its shares in order to operate a portfolio of capital market instruments and other assets and rights to be determined by the CMB and is a joint stock company subject to the registered capital system, which can perform other activities permitted in the relevant Communiqué. VCIT is preferred due to its corporate tax advantage.
- Companies that participate in many companies in their portfolio as minority or main shareholders are potential VCIT candidates.
- Investments wished to be made with VCIT can also be made through VCIF (venture capital investment funds) and both have the same tax advantages. However, due to the public offering of the VCITs, VCIT shareholders can sell their shares in the market. VCIF fund shares change hands only among qualified investors. However, while the value of the fund shares is priced according to the value determined by the valuation reports of the assets, the value of the VCIT shares is the purchase and sale value in the stock exchange, and in other words, the value of the shares can be much lower than the value of the assets in times of crisis.
The following services are provided within the scope of VCIT organization.
- VCIT transformation / establishment processes are a comprehensive and specialized process that starts from the amendment of the articles of association and is completed with the public offering.
- We provide consultancy to the company during the transformation / pre-establishment portfolio creation phase.
- Prudens gets proposals on behalf of the Company, if requested in areas such as expertise, independent audit, and legal opinion that require outsourcing.
- When the optimum structure is established, the relevant applications are made by the determined intermediary institution and the coordination of the whole process is carried out by Prudens.
- When the optimum structure is established, the relevant applications are made by an appropriate intermediary institution and the coordination of the whole process is carried out by Prudens.
- VCIT establishment process may vary between 6-12 months depending on the readiness of the companies.