UK investment group Ingenious is to launch a second Enterprise Investment Scheme (EIS) fund to raise money for energy-saving refurbishments in commercial and industrial buildings.
The decision follows the successful closure of a first fund raise for non-domestic
energy efficiency projects through the
Ingenious Energy Efficiency EIS Fund. The first of its kind in the UK, the fund closed in March and exceeded its £10 million target fund raise.
Sebastian Speight, managing director of Ingenious Clean Energy, said the success of the fund supported the
investment group’s view that the clean energy market has "come of age". Ingenious recently closed its Solar UK EIS fund, which also exceeded its target raise and said it would also shortly be launching another EIS fund to raise money for
renewable energy projects.
"The appetite shown for the
Energy Efficiency EIS Fund supports Ingenious’ view that the clean energy market has come of age and can provide attractive risk adjusted returns for investors. We are excited about the prospects to augment the success of both this fund and the Solar UK EIS by extending Ingenious’ range of clean energy investment opportunities," he said.
Deploying funds
Working in collaboration with sustainability investment advisers, Sustainable Development Capital, Ingenious will now begin deploying funds from its Energy Efficiency EIS into companies that provide energy efficiency services in commercial and industrial properties. Properties targeted will include hotels, logistics centres, industrial facilities, schools and hospitals.
"Our focus now is on supporting the portfolio companies in their business development as they identify energy efficiency projects with associated benefits to the property owners, the investors and to the environment," James Axtell, investment director and fund head of the Energy Efficiency EIS Fund, said.
Investment opportunity
Ingenious, which launched in 1998, has up until now be largely focused on the media sector. But Government and regulatory support for energy efficiency is making this sector increasingly attractive to investors. The Government’s energy department has a new 50-strong team to spearhead energy efficiency
policy across a range of sectors and in October the Government will be launching the Green Deal, a national energy efficiency scheme to insulate homes and businesses.
Case studies shows that the rates of return for investors on a commercial property that is undergoing energy efficiency refurbishment are forecast to be as much as 20 per cent.
"Energy efficiency is one of the most cost effective and largest sources of clean energy and greenhouse gas emission reductions. There is a substantial need for investment in energy efficiency in the UK and the Energy Efficiency EIS Fund is well placed to address it and achieve attractive returns for investors," said Jonathan Maxwell, ceo of Sustainable Development Capital.
EIS changes
Recent changes to the EIS , means the amount an individual can invest per tax year in EIS shares has risen from £500,000 to £1 million and the maximum annual amount that can be invested in an individual property is now £5 million, up from £2 million.
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