The £6 billion U.K.-based alternative investment boutique Future Capital Partners has added two vehicles to its clean energy portfolio in an effort to capitalize on what it expects will be strong growth in this investment space.
The new products—the Elara Renewable Fund, an enterprise investment scheme vehicle, and Clean Future Venture Capital Trust—will offer investors access to opportunities within the renewable energy, energy efficiency and waste recycling fields. The vehicles intend to invest in wind, biomass, landfill gas and solar technology companies.
The Elara Renewable Fund targets annual average returns of 7% post-tax and will employ a conservative investment strategy focused on lower risk opportunities across the renewable sector. The fund has a minimum investment of £5,000. Future Capital Partners says investors in the EIS may qualify for a number of tax breaks, including income tax relief, deferred capital gains, and inheritance tax relief.
Clean Future VCT aims to provide tax-free annual dividends of 7% to investors. Shares in the VCT are offered at £1 per share, with a minimum investment of £5,000. The fund will target 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 capital gains tax on disposal of the investment.
FCP expects the renewable energy area to see significant growth, thanks to the EU’s Renewable Energy Directive calling for 20% of all energy in Europe to come from renewable sources by 2020.
The new vehicles target U.K. retail, institutional and high net worth investors, and represent FCP’s latest foray into the renewable energy space, where it already operates Future Fuels, funding and building an industrial-scale bioethanol plant in the North of England.