Ingenious Clean Energy, a division of UK based investment and advisory group Ingenious, has launched two new Enterprise Investment Scheme (EIS) investment opportunities, giving individuals the opportunity to participate in sustainable businesses and projects around the UK.
The Clean Energy division, which was set up earlier this year comprising both existing Ingenious talent and external hires with strong sector experience, will raise much needed investment for this fast-growing sector while responding to the appetite amongst investors for clean energy investments, via the launch of the Ingenious Energy Efficiency EIS Fund and the Ingenious Solar UK EIS.
The Ingenious Energy Efficiency EIS Fund is targeting a GBP10 million raise, and will provide an attractive and unique opportunity for UK taxpayers to invest in companies which install energy saving equipment in UK commercial and industrial properties. Ingenious is working with energy efficiency specialists Sustainable Development Capital LLP who it has appointed as Investment Adviser to the Fund and who will be assisting in evaluating and executing relevant investment opportunities.
The Fund will invest in companies which will install a range of energy saving equipment in large private and public sector properties to reduce the energy consumption in the buildings by upwards of 25%. The proven energy saving equipment installed will range from low energy light bulbs to heating and cooling equipment and innovative insulation techniques. The Fund’s investee companies will earn revenues from the building owners who will make payments based on the energy reductions.
The services provided are expected to be highly valued by property owners at a time of increasing energy prices and where so much of the energy purchased is currently wasted through inefficiency. In addition, reducing energy usage will contribute to building owners meeting their obligations to reduce their carbon footprint under the Carbon Reduction Commitment Scheme.
The Fund, in which investors will commit their money for at least three years, will target a net-of-tax average annual return of 19.6% (including the tax relief benefits provided by the EIS). Investors can access the Fund with a minimum investment of GBP10,000.
Ingenious Solar UK EIS offers investments into companies that operate a portfolio of sub-50kW solar photovoltaic facilities in the UK. These companies will have access to a number of solar PV installations constructed by Europe’s sixth largest solar PV developer. The facilities will be located on sites around the south of England and provide local power for one of the UK’s largest water and wastewater service providers resulting in significant energy efficiencies. These companies will benefit from a strong pipeline of projects and predictable cash generation from government backed Feed in Tariffs (FiTs).
Each company will target a net-of-tax average annual return of 16.3% (including the tax relief benefits provided by the EIS). The minimum investment is GBP50,000.
Sebastian Speight, Director of Ingenious Investments since 2009, has been appointed Managing Director of the Clean Energy division, where he is responsible for the investment offerings focused on the Clean Energy Sector. James Axtell has joined Ingenious as Fund Head of the Energy Efficiency EIS Fund while Jeremy Milne, also an Investment Director for Ingenious Investments, has been appointed Fund Head of the Solar UK EIS.
Sebastian Speight (pictured), Managing Director of Ingenious Clean Energy, says: “We are delighted to be offering investors the opportunity to invest in a progressive sector which is key for the UK’s economic recovery and in securing a sustainable energy supply for future generations.
“Investing knowledgably in rapidly evolving commercial sectors is what Ingenious does best and these two new funds enable our investors to participate in the growth of an important, innovative sector whilst reducing their exposure to risk through an experienced alternative investment manager.”
James Axtell, Fund Head of the Energy Efficiency EIS Fund, says: “The size of the UK energy efficiency market was estimated to be GBP4.3 billion in 2010 and this is set to expand still further over the next decade as binding EU regulation requires the UK to significantly reduce existing electricity generating capacity by 2020.”
“To date, high upfront capital costs have deterred property owners from investing in energy saving equipment resulting in a lack of funding. By working with specialists such as SDCL, we can start reversing this trend, while offering an attractive investment opportunity for the Fund and its investors.”
Jonathan Maxwell, CEO of SDCL, says: “We are delighted to be working with Ingenious to offer EIS investors the opportunity to participate in energy efficiency projects in the UK, which we consider to be one of the largest and most cost-effective sources of clean energy and greenhouse gas emission reductions.”
