Maven VCT 4 Reports 7.3% Dividend Yield and Successful AI Exit Amid Regulatory Changes

Maven VCT 4’s 2025 scorecard: bigger dividends, steady total return, lower NAV

Maven Income & Growth VCT 4 has posted a resilient set of finals to 31 December 2025. The headline: a 7.3% dividend yield for the year and a small uptick in NAV total return, supported by two cash-generative exits and a post year-end partial sale of AI-enabled software business Summize.

There is a trade-off here. NAV per share fell to 55.28p (2024: 59.47p) as dividends went out the door, but NAV total return – which adds back all historical dividends – nudged up to 154.63p (2024: 154.32p). In other words, income flowed, and the long-run value line inched higher.

Key numbers investors care about

Quick jargon check: NAV is net asset value per share. NAV total return adds back all historical dividends, giving a fuller picture of value creation over time. VCTs are Venture Capital Trusts that invest in smaller UK companies and offer tax benefits subject to HMRC rules.

Dividend policy delivered – and then some

Maven VCT 4 enhanced its dividend policy last year to target 6% of prior year-end NAV. In 2025 it beat that target, paying 2.75p in August and 1.00p in January, with a 0.60p final proposed for 15 May 2026. That totals 4.35p for the year – a 7.3% yield on the 59.47p starting NAV. The Board reminds investors that dividends reduce NAV and are dependent on profitable exits, distributable reserves and VCT qualifying levels.

On reserves, a court-approved cancellation of the share premium account and capital redemption reserve in February 2026 has increased distributable reserves, giving more flexibility for future payments. But the Board is clear: quantum and timing still depend on realisations and VCT rules.

Portfolio actions: two cash exits and a high-multiple AI partial sale

Cash-generative exits funded the cheques

• Horizon Ceremonies (crematoria): realised in July 2025 at an initial 2.3x cost, with cash proceeds of over £5 million and potential deferred consideration subject to planning approvals.
• DPP (M&E maintenance): exit in November 2025 at 2.1x cost, generating over £2.4 million in cash.

The majority of proceeds went straight to shareholders via the interim dividends. That is exactly how an income-focused VCT should work when exits land.

Summize partial exit post year-end

Shortly after the period end, a funding round for AI-enabled contract software specialist Summize brought in £40 million from a syndicate that included Maven’s Regional Buyout Fund II and new institutions. Maven VCT 4 crystallised a partial exit at 3.6x cost while retaining a meaningful equity stake. Since the initial 2022 investment, Summize’s annual recurring revenue has grown by 100% year on year for five consecutive years, and the business has successfully launched in the US. The Board explicitly supports partial exits that return cash while keeping upside in high-performers – a sensible balance.

New investments, follow-ons and a cautious stance on AIM

Deal flow remained healthy. The VCT invested £2.6 million into five new private companies and £4.1 million of follow-on capital across 19 portfolio companies. Follow-on funding is increasingly central to the strategy, with tranches and milestones used where progress is behind plan to protect value.

Exposure to AIM-listed holdings has been trimmed to 1.8% of NAV (from 3.2%). The Manager is likely to make few, if any, new AIM investments unless the case is compelling or there is a clear arbitrage opportunity.

Liquidity, treasury and costs

Cash and cash equivalents of £15.585 million and a diversified treasury pool are earning a blended annualised yield of over 3% across money market funds, OEICs, investment trusts and bank deposits. That helps offset costs while capital is waiting to be deployed, and it supports compliance with the “Nature of Income” condition in VCT rules.

The ongoing charges ratio rose modestly to 3.13% (2024: 3.00%). The Board aims to spread fixed costs over a larger asset base via fundraising and to keep buybacks active, targeting a share price around a 5% discount to NAV, subject to usual constraints and closed periods.

Fundraising progress and timetable

• The September 2024 offer closed early in April 2025, fully subscribed, raising £10 million.
• The October 2025 offer targets £12.5 million with an over-allotment facility of up to £5 million opened in February 2026. As at the Annual Report date, subscriptions totalled £8.7 million across the 2025/26 and 2026/27 tax years. Details: mavencp.com/vctoffer.
• Dividend Investment Scheme is available. Documents and terms: mavencp.com/migvct4.

Big VCT rule changes from April 2026: what it means

From 6 April 2026 the Government will double key company-side VCT limits: annual investment per company rises to £10 million (£20 million for knowledge-intensive), lifetime to £24 million (£40 million for knowledge-intensive), and the gross assets test also doubles. That widens Maven VCT 4’s opportunity set and allows larger follow-on cheques as winners scale.

The sting in the tail is for investors: initial income tax relief on new VCT shares issued on or after 6 April 2026 will be cut from 30% to 20%. The Manager, via the VCTA, is lobbying for a rethink. For now, it is a clear headwind for future fundraising economics but not for the portfolio itself.

Management succession noted

Long-standing VCT lead Bill Nixon has transitioned to Chair of Maven, with Ewan MacKinnon becoming Investment Manager of the Maven VCTs and Managing Partner. Ewan has co-managed the VCT portfolio for several years and chairs the valuation committee. Bill remains on the Board as a non-executive Director, preserving continuity.

My take: strengths, watch-outs, and upcoming catalysts

What looks positive

• Cash-backed exits at 2.1x and 2.3x supported a 7.3% dividend yield, comfortably above target.
• Summize partial exit at 3.6x with retained upside shows discipline and access to deep-pocketed co-investors.
• Portfolio breadth across SaaS, cyber, data analytics, regtech and advanced manufacturing, with limited direct exposure to discretionary consumer weakness.
• Healthy liquidity and a >3% treasury yield while hunting for new deals.

What to keep an eye on

• NAV per share fell to 55.28p. Sustaining the enhanced dividend will depend on further realisations and portfolio progress.
• Lower investor tax relief from April 2026 could slow fundraising across the VCT sector.
• Ongoing charges at 3.13% – the drive to scale assets and keep buybacks active will matter for net returns.

Dates and milestones

• AGM: 7 May 2026, London EC2V 6BR.
• Proposed final dividend: 0.60p, payable 15 May 2026 (record date 17 April 2026). DIS election deadline: 1 May 2026.
• Offer timetable: 2026/27 applications close 24 April 2026 unless fully subscribed.
• Further exits or partial realisations similar to Summize would be supportive for dividends and NAV.

Bottom line

For income-focused VCT investors, this is a solid update. Maven VCT 4 delivered an above-target yield funded by profitable exits, kept NAV total return inching forward, and demonstrated that its maturing portfolio can attract substantial third-party capital. The main risk is sustaining distributions if realisations slow, especially with a tougher fundraising backdrop post April 2026. For now, the combination of liquidity, diversification and a clear partial-exit playbook gives the Board room to keep doing what shareholders want – recycle gains into regular, tax-free dividends.

Further information and documents: mavencp.com/migvct4. The Annual Report will also be available via the FCA’s National Storage Mechanism in due course.