Guinness EIS 4 – a discretionary managed service that will invest in UK sustainable energy companies through the tax-efficient EIS structure – is now open for investment.
Guinness EIS 4 is targeting attractive risk-weighted returns by making investments in sustainable energy companies which have predictable revenues, low technology risk and low correlation with other asset classes.
Guinness has identified investment opportunities in renewable energy and energy efficiency companies which have these investment characteristics. Renewable energy investment opportunities include solar photovoltaic and biomass projects, while energy efficiency projects focus on reducing energy costs in office and commercial buildings. The firm aims to deliver returns in excess of GBP1.50 to investors (including GBP0.30 EIS income tax relief) net of all fees per GBP1.00 invested.
Guinness EIS 4 will be managed by Shane Gallwey, Tom Hill-Norton and Edward Guinness who bring extensive private equity and renewable energy experience and have raised and invested Guinness’ existing EIS offerings. They are supported by an investment committee that complements the team with the experience of Tim Guinness, Andrew Martin Smith and Lord Flight, chairman of the EIS Association.
Hill-Norton says: “The UK has a number of powerful drivers that make sustainable energy investments particularly attractive right now: high and rising energy costs; attractive government incentives for renewables; and a maturing renewables sector with falling technology costs and increasingly experienced developers, installers and asset managers.
“Guinness EIS 4 will continue our strategy of backing small-scale companies as these typically benefit from higher subsidies, lower competition for deals and on-site end users willing to enter long-term offtake agreements – all of which contribute to compelling financial returns.
“Our pipeline includes exciting new investment opportunities as well as follow-on investments in existing companies where we already have terms agreed.”