First published in Cleantech magazine, February 2011. Copyright Cleantech Investor 2011
Fund: Elara Renewable, Shares in the Clean Future VCT
Manager: Future Capital Partners
Stage: Launch
Future Capital Partners (FCP), has launched its first venture capital trust (VCT) and an enterprise investment scheme (EIS) to invest in renewable energy efficiency and waste recycling businesses. More specifically, the vehicles will look into investments in wind, biomass, landfill gas and solar technology firms.
Potential investment opportunities will typically be renewable energy firms able to demonstrate a long term track record, solid business plans and growth potential supported by government legislation and subsidies.
Elara Renewable, the EIS vehicle, is pitched as a low risk investment strategy focused on opportunities within the renewable field. According to the fund managers, minimum investment in the fund is £5,000 and backers should qualify for 20% income tax relief on investments up to £500,000 in any one tax year.
Investors can postpone capital gains tax (CGT) liabilities by investing in the fund and will be eligible for 100% relief from inheritance tax after two years. Any capital gains realised on disposal of investments held by the fund after three years should be exempt from CGT.
Shares in the Clean Future VCT, the second new launch, are offered at £1 per unit, with tax-free annual dividends of 7% to investors. The minimum investment is also £5,000. The VCT aims for a total return of 130p per share, and investors will qualify for up to 30% income tax relief on capital invested in the fund, as well as exemption from CGT on sale of the investment.
FCP already has a presence in renewable energy investment as a result of Future Fuels, its investment partnership directed at high net worth investors. According to the investment boutique, Future Fuels is funding and building an industrial scale bioethanol plant in the north of England.
“While this is our first foray into the EIS and VCT space, we believe that the firm’s experience in renewable energy, our expertise in tax structured investment and the quality of our investment team make us ideally suited to enter the market with these funds,” said Tim West, deputy chief executive at FCP.
The fund managers expect the new vehicle “to prove as popular among investors as Future Fuels.” The main targets are UK backers in the retail, institutional and high net worth sectors.
| Next > |
|---|
