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British hedge fund manager launches green investment opportunity
January 13, 2010
Future Capital Partners (FCP), the £6 billion alternative investment boutique, has launched a groundbreaking investment opportunity that will allow UK investors to invest in biofuels for the first time.
Future Fuels is a partnership established by FCP to fund the building of a bio-ethanol plant in the North of England. The industrial scale plant will produce two principal products - bio-ethanol and high protein animal feeds. Agreements signed with two global institutions to purchase the plant's produce will ensure the project's profitability. A major global investment bank has already agreed a £1bn purchase for the first ten years of production, while a global commodities trading firm has made a GBP500m commitment over the same period to purchase the animal feed produced.
The partnership expects to provide its investors returns of 30pc per annum over the five to seven year period of the plant's construction. It will be raising GBP40m equity towards the plant, and there will be a minimum investment of £50,000. The return will largely be derived from a trade sale or IPO upon the commissioning of the plant.
Tim Levy, CEO at Future Capital Partners said: "Biofuels is the investment opportunity of the future. In the wake of Copenhagen, the global focus on renewable energy is there for all to see, yet opportunities to invest in such an obvious growth sector are currently non-existent. Future Fuels will provide investors with the opportunity to invest in one of only three biofuel production plants in the country."
The partnership will target sophisticated retail investors and high net worth individuals via the intermediary market. FCP’s opportunities are sourced through UK wealth managers, high-end IFA's and private banks.
Future Fuels will provide an opportunity to invest in one of the next decade's most lucrative growth industries. EU and UK directives have stated that by 2020, 23 billion litres, or 13pc of all the UK's transport fuel, must be made up of locally produced bio-ethanol. Currently, just 2 billion litres (or 3.5pc) of the UK’s fuel consists of biofuels, meaning that the biofuels industry is set to grow more than ten-fold in the next decade. In addition, BP and Shell have publicly announced that the focus of their renewable investment will be in biofuels.
FCP is undertaking the project with Vireol, which will operate the completed plant. The partnership will provide the finance for construction and the purchase of the site. Once completed, the partnership will lease the plant to Vireol.
The project that the partnership will undertake has been peer reviewed and validated by Imperial College London. As one of the leading academic research centres globally for climate change and sustainable renewable transport fuels, the independent verification provided by Imperial ensures that the project is completely environmentally friendly.
Levy concluded: "While we are proud of the positive environmental and social effects the project will have, it is the investment opportunity itself that is truly exciting. It is a chance to capitalise on a non-correlated, niche investment of huge potential, while the risk controls we have placed around the partnership make it an extremely secure investment. Moreover, by securing offtake agreements for the plant's produce, we have ensured the project's long term success. For the first time, Future Fuels will give UK investors the chance to take advantage of the next decade's most lucrative investment."
Future Capital Partners specialises in alternative investments such as renewable energy, international property, biotechnology and media and entertainment. The firm's products and investment opportunities are available to investors through financial institutions, wealth managers, IFAs and accountants.
The production of European RTFs is expected to grow tenfold over the next decade, and RTFs are currently the only sector into which Shell and BP are committing significant Renewable Energy investments.
The partnership expects to provide its investors returns of over 30pc per annum over a five to seven year period. It will be raising £40 million ($64.56 million) equity, of which it has already secured over £5 million ($8 million) (including a £3 million ($investment from Future Capital Partners itself), and there will be a minimum investment of £50,000 ($87,000). A trade sale or IPO is targeted within 5 years of commissioning of the plant.
Future Fuels is a partnership established by FCP to fund the building of a bio-ethanol plant in the North of England. The industrial scale plant will produce two principal products - bio-ethanol and high protein animal feeds. Agreements signed with two global institutions to purchase the plant's produce will ensure the project's profitability. A major global investment bank has already agreed a £1bn purchase for the first ten years of production, while a global commodities trading firm has made a GBP500m commitment over the same period to purchase the animal feed produced.
The partnership expects to provide its investors returns of 30pc per annum over the five to seven year period of the plant's construction. It will be raising GBP40m equity towards the plant, and there will be a minimum investment of £50,000. The return will largely be derived from a trade sale or IPO upon the commissioning of the plant.
Tim Levy, CEO at Future Capital Partners said: "Biofuels is the investment opportunity of the future. In the wake of Copenhagen, the global focus on renewable energy is there for all to see, yet opportunities to invest in such an obvious growth sector are currently non-existent. Future Fuels will provide investors with the opportunity to invest in one of only three biofuel production plants in the country."
The partnership will target sophisticated retail investors and high net worth individuals via the intermediary market. FCP’s opportunities are sourced through UK wealth managers, high-end IFA's and private banks.
Future Fuels will provide an opportunity to invest in one of the next decade's most lucrative growth industries. EU and UK directives have stated that by 2020, 23 billion litres, or 13pc of all the UK's transport fuel, must be made up of locally produced bio-ethanol. Currently, just 2 billion litres (or 3.5pc) of the UK’s fuel consists of biofuels, meaning that the biofuels industry is set to grow more than ten-fold in the next decade. In addition, BP and Shell have publicly announced that the focus of their renewable investment will be in biofuels.
FCP is undertaking the project with Vireol, which will operate the completed plant. The partnership will provide the finance for construction and the purchase of the site. Once completed, the partnership will lease the plant to Vireol.
The project that the partnership will undertake has been peer reviewed and validated by Imperial College London. As one of the leading academic research centres globally for climate change and sustainable renewable transport fuels, the independent verification provided by Imperial ensures that the project is completely environmentally friendly.
Levy concluded: "While we are proud of the positive environmental and social effects the project will have, it is the investment opportunity itself that is truly exciting. It is a chance to capitalise on a non-correlated, niche investment of huge potential, while the risk controls we have placed around the partnership make it an extremely secure investment. Moreover, by securing offtake agreements for the plant's produce, we have ensured the project's long term success. For the first time, Future Fuels will give UK investors the chance to take advantage of the next decade's most lucrative investment."
Future Capital Partners specialises in alternative investments such as renewable energy, international property, biotechnology and media and entertainment. The firm's products and investment opportunities are available to investors through financial institutions, wealth managers, IFAs and accountants.
The production of European RTFs is expected to grow tenfold over the next decade, and RTFs are currently the only sector into which Shell and BP are committing significant Renewable Energy investments.
The partnership expects to provide its investors returns of over 30pc per annum over a five to seven year period. It will be raising £40 million ($64.56 million) equity, of which it has already secured over £5 million ($8 million) (including a £3 million ($investment from Future Capital Partners itself), and there will be a minimum investment of £50,000 ($87,000). A trade sale or IPO is targeted within 5 years of commissioning of the plant.
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