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Future Capital Partners launches green investment opportunity

Future Capital Partners, an alternative investment boutique, has launched an investment opportunity that will allow UK investors to invest in the rapidly growing renewable transport fuels sector for the first time.

The production of European RTFs is expected to grow tenfold over the next decade, and RTFs are currently the only sector into which Shell and BP are committing significant renewable energy investments.

Future Fuels is an LLP established by FCP to build a renewable transport fuel plant in Grimsby, North East England. The industrial scale plant will produce two principal products – ethanol and a high protein animal feed, Distillers Dried Grains and Solids.

Agreements signed with two global institutions to purchase the plant’s produce ensure scope for the project’s profitability and enterprise value. Heads of agreement have been signed with a major global investment bank for the purchase of the first ten years of RTF production, while a global animal feeds business has made a GBP250m to GBP500m commitment over the same period to purchase the animal feed produced.

The partnership expects to provide its investors returns of over 30 per cent per annum over a five to seven year period. It will be raising GBP40m equity, of which it has already secured over GBP5m (including a GBP3m investment from Future Capital Partners itself), and there will be a minimum investment of GBP50,000. A trade sale or IPO is targeted within five years of commissioning of the plant.

Tim Levy (pictured), chief executive at Future Capital Partners, says: “RTFs are the investment opportunity of the future. The global focus on renewable energy is there for all to see, yet opportunities to invest in such an obvious growth sector are currently non-existent. Future Fuels will provide investors with the opportunity to invest in one of only three RTF production plants in the country.”

The partnership will target sophisticated retail investors and high net worth individuals via the intermediary market. FCP’s opportunities are sourced through UK wealth managers, high-end IFAs, accountants and private banks.

FCP is undertaking the project with Vireol, which will operate the completed plant. The partnership will own, provide finance for and construct the site. Once completed, the partnership will lease the plant to Vireol.

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