New fund rolled out following close of Elara
Fund
Following the recent close of its
renewable energy EIS fund Elara I, Future Capital Partners ("FCP"),
the £6 billion alternative investment boutique, has launched a new
EIS fund that will give investors another chance to capitalise on
the firm's green energy strategy.
The new EIS fund,Elara II,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. The level of
growth required from renewable energy projects, such as those run
by Blue Energy, to meet these targets is expected to be a central
driver of performance.
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.
FCP has a strong background in renewable energy investment. In
addition to its recently closed EIS fund, the firm also manages
Future Fuels, an investment partnership aimed at high net worth
investors that is funding and building an industrial scale
bioethanol plant in the North of England.
Elara II is targeting high net worth UK investors and the vehicle
will offer investors a number of tax relief advantages within the
investment.
Piers Denne, Head of Sales & Marketing at Future Capital
Partners, commented:
"The successful close of Elara Fund has shown us that there is
significant appetite among investors for this approach. One of the
main drivers for hitting our 2020 carbon reduction targets will be
small scale renewable projects being installed across the UK. Blue
Energy is one of the leading companies providing these services, so
we could not have asked for a more suitable partner for our EIS.The
fact that Feed-in-Tariffs are still extremely attractive for these
smaller projects means that we can offer excellent downside
protection while also giving our investors outstanding
returns."