Foresight Launches £20 million Foresight Solar EIS Fund 3
- Published: Sunday, 19 May 2013 07:13
Foresight Group (Foresight), the leading independent alternative asset manager with a strategic focus on private equity, infrastructure and environmental, announces the launch of a £20 million fundraising for Foresight Solar EIS Fund 3.
This new Solar EIS will capitalise on Foresight’s extensive experience in renewable energy, and follows the successful fundraising for Foresight Solar EIS Fund 2 which recently closed at £30 million having been the fastest EIS fundraising of the 2012/13 tax year season.
Foresight Solar EIS Fund 3, like its predecessor, will invest in UK Solar Power Plants where investors can benefit from the enhanced revenue streams possible under the Government’s Renewable Obligation (RO) scheme. In addition to income derived from selling the generated electricity, generation plants accredited under the RO scheme receive 20 years of income from the sale of Renewable Obligation Certificates, which substantially increases the Solar Power Plants’ returns.
Foresight has been one of the pioneers in the European Solar market, having built a £310 million portfolio of solar assets in the UK, Italy and Spain with a generating capacity of 86MW. Foresight recently issued a £60 million Solar Bond on the London Stock Exchange, the largest UK Solar Bond to date, in order to refinance its 16MW portfolio of four UK Solar Power Plants in Kent, Somerset and Wiltshire. This refinancing had the immediate impact of enhancing the target return for investors in Foresight Solar VCT, and Foresight Solar EIS by [c15-20%]. Foresight Solar VCT and Foresight Solar EIS continue to own 100% of the equity in the four plants.
Since 2010, Foresight has now raised in excess of £100 million from private investors for its Solar VCT, and two Solar EIS schemes, and alongside Foresight Solar EIS Fund 3, it continues to raise funds for Foresight Solar VCT – C Shares, which has particular appeal to investors who are attracted by the tax free dividend income available from VCTs.
Foresight sources its opportunities through its established network of contacts in the UK Solar sector, and has received approaches from solar entrepreneurs to finance a pipeline of opportunities worth more than £600 million.
Ben Thompson, Marketing Director at Foresight commented: “Appetite for our Solar EIS and Solar VCT offerings continues to be strong due in part to the fact that Solar is now a priority renewable technology in DECC’s published renewables roadmap as well as the healthy target returns from a maturing sector which offers index-linked revenue streams. We expect demand for Foresight Solar EIS Fund 3 and for Foresight Solar VCT – C Shares to fill up steadily as the attractions of Solar Investing become apparent. Our experience in infrastructure investing has been a telling advantage, with our EIS and VCT offerings ranked highest among new offerings by Tax Efficient Review this season”