Future Capital Partners launches two renewable energy funds

31 Jan 2011

Alternative investor Future Capital Partners (FCP) has launched two funds to capitalise on the high growth potential of the renewable energy investment sector.

The £6bn investment boutique’s new Enterprise Investment Scheme (EIS) and a Venture Capital Trust (VCT) fund will target low-risk opportunities within the renewable energy, energy efficiency and waste recycling fields.

Expected to attract institutional and high net worth investors, the new funds will build on FCP’s Future Fuels investment partnership, which was launched last year to fund an industrial-scale bio-ethanol plant in North England.

With wind, biomass, landfill gas and solar technology high on the investment agenda of both funds, FCP said the investment vehicles will look to capture anticipated growth in the renewable energy sector. With a minimum investment threshold of £5,000, they are both advertised with tax relief bonuses.

The UK-based investment firm said the funds will focus not only on companies whose growth potential is supported by government legislation and subsidies, but which also have a proven long-term track record and strong business plans.

Its new conservative EIS vehicle – the Elara Renewable Fund – is to target annual average returns of seven per cent post-tax, with a minimum investment of £5,000; while the Clean Future VCT will aim to provide tax-free annual dividends of seven per cent, with shares offered at a price of £1 each.

Wind energy developer Gaia Power’s Peter Conway will serve as independent non-executive director to the listed VCT, while FCP’s Jonathan Turney, Gavin Harrison and Stephen Norton will manage the funds.

FCP deputy CEO Tim West said, ‘While this is our first foray into the EIS & 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.’

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