Future Capital Partners Unveils Second Renewable Energy Fund

Oct 24 2011 | 8:31am ET

Alternative investment boutique Future Capital Partners has launched a new EIS fund that will give investors a chance to capitalise on the firm’s green energy strategy.

The new fund, Elara II, targets targets an average gross equivalent annual rate of return of 29.28% and will be adopting a conservative investment strategy focused on lower risk opportunities in the renewable energy sector. Following Elara I Fund’s raise of £2 million, the new fund will aim to raise at least £4 million, and is expected to close in December.

Like Elara I, the new EIS fund will source a range of lower risk renewable energy opportunities. These opportunities will be similar to the first Elara fund which invested in a company providing services to Blue Energy, a renewable energy development and investment company. Blue Energy specialises in providing renewable energy project development, specifically wind and solar projects based in the UK. The firm recently completed work on the UK’s largest solar energy farm in Oxfordshire.

The investment strategy of the fund will take advantage of significant expected growth within the renewable energy arena. The EU’s Renewable Energy Directive states that 20% of all energy in the EU must come from renewable sources by 2020.

Investors in the fund should qualify for 30% income tax relief on investments up to £500,000 in the current tax year, significantly reducing the initial cost of investment. In addition, investors can defer capital gains tax liabilities by investing in the fund and will qualify 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 capital gains tax. The fund has a minimum investment of £5,000.

Elara II is targeting high net worth UK investors and the vehicle will offer investors a number of tax relief advantages within the investment.

Founded in 2000, UK-based Future Capital Partners specializes in renewable energy, real estate, healthcare, and media and entertainment. Future Capital Partners has completed transactions and made investments worth in excess of £6 billion.

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