Sustainable Technology Investors has launched an enterprise investment scheme (EIS) fund with backing from Hargreaves Lansdown co-founder Stephen Lansdown.
The fund will invest in unlisted companies in the sustainable technology and renewable energy sectors.
The investment specialist will target an internal rate of return of 17% and will aim to provide downside protection by investing in “highly cash-generative products with secure revenues”.
The fund wil be managed by Gordon Power, chairman of Sustainable Technology Investments, and Jim Totty, managing director.
Parent company Sustainable Technology Investments (Guernesey) was set up by Gordon Power and Lansdown in 2009 and will invest its own assets.
Jim Totty says: “The launch of this fund marks the beginning of our drive to bring attractive sustainable technology and green energy investments to the intermediary market.
“We believe the EIS structure is ideal for doing this, owing to its unrivalled tax-efficiency.”
He says: ““The investment case for renewable energy and sustainable technology in the UK is compelling.
“China and other emerging industrial powers are increasing the competition for natural resources, driving up prices and reducing availability. Oil and gas suppliers will ultimately supply to the highest bidder.”
Totty adds: “The government therefore recognises that we must find alternative, sustainable sources of power in order to safeguard our energy supplies.
“That is why investing in proven sustainable technologies and cash-generative businesses operating in the fields of renewable energy and sustainability is becoming increasingly rewarding.”
Investors can elect to receive a yield over the life of [a] fund or collect an annual dividend, with dividend payments of “just over 5% per year” beginning after two years.
The EIS fund has a minimum investment of £15,000 and will remain open into the next tax year, with a final closing at the end of July.