Oxford Capital Solar EIS Launched

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Oxford Capital targets small-scale solar developments on public and commercial prope­rties ­

The Oxford Capital Solar EIS, launched today, gives investors income tax relief and the potential to earn tax free capital growth from investment in a diversified­ portfolio of solar energy assets. ­

The new fund will invest in companies which install, operate and own a portfolio of solar energy assets across schools, public and commercial buildings. Each company will earn income under the Government’s electricity ‘Feed In Tariffs’ (FITs) scheme which are indexlinked and guaranteed for 25 years. ­

The fund will target sites which are suited to generating up to 10kW each on public and commercial properties. This will avoid the planning requirements of large greenfield site developments, which are already subject to further government consultation, and eliminate the administrative burden of managing multiple small residential installations. The fund aims to be fully invested before the Government makes any changes to the FITs scheme, which is likely to be April 2012, under the recently announced review.

Oxford Capital is targeting a number of separate projects each with a ¬maximum of £2m equity investment to ensure a wide diversification of risk for investors. The fund will also benefit from Oxford Capital’s ten year track record of investing in businesses in the sustainable technologies sector. Investors will benefit from the Enterprise Investment Scheme (EIS) tax advantages of 30 per cent income tax relief, 100 per cent capital gains tax relief, unlimited deferral of capital gains tax already incurred and inheritance tax relief. The fund is targeting investments with an annualised tax-free return of 12.5 per cent over a period of four years which equates to a return of 20.8 per cent for a 40 per cent tax payer and 25.0 per cent for a 50 per cent tax payer.

David Mott, Investment Director, Oxford Capital says: “The Government’s Feed In Tariffs scheme has been designed to incentivise small-scale, low carbon electricity generation. Investments in solar energy benefit from the highest Feed In Tariffs which is why we are focusing on this sector. “We’re aiming for a three year holding period and are planning to deliver double digit tax free returns to investors through a sale of the fund’s assets to a financial or strategic acquirer. “We have designed the Oxford Capital Solar EIS to avoid the potential pitfalls which face alternative solar funds. By steering clear of controversial, large-scale, greenfield developments we are avoiding the need for planning permission, the current uncertainty raised by the recently announced government review and the potential conflicts with local residents concerned about unsightly solar farms springing up in the countryside. Our focus on small-scale developments on schools, public buildings and commercial properties also benefits from far greater stability of ownership than schemes which focus on small residential developments.”

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For further information please contact:

Ted Mott, Oxford Capital Partners     01865 860760
Mike Lord, Lord Public Relations       07831 401 311

Important Information

Your capital is at risk by investing in the above products and you should not consider an investment if you are not able to bear this risk. EIS tax advantages are only available to UK tax resident investors and legislation is subject to change. Oxford Capital does not give tax advice and if you are in any doubt about aspects of the EIS legislation then please contact a tax advisor.

Notes to editors

Founded in 1999 Oxford Capital is a specialist investment manager working on behalf of institutional and private investors.  Its focus is on investing in emerging companies around three super-growth themes of communications, healthcare and sustainability. Its expertise lies in accelerating businesses with potential for high growth into global markets.

Oxford Capital currently oversees a portfolio of around 25 companies, many of which have expanded into international markets in Europe, the US, Latin America, the Middle East and Asia.

The firm manages a range of funds designed for private investors, family offices and institutions to access growth capital opportunities and alternative investments. In the UK, Oxford Capital pioneered the tax efficient Enterprise Investment Scheme (EIS) fund which offers a range of tax advantages to investors.

Oxford Capital has offices in the UK and in Switzerland and manages an international network of partners and advisers to support the development of its portfolio companies.

Awards

  • Unquote British Private Equity Awards 2010
    Finalist: Venture House of the Year Award
  • Investor Allstars Awards 2010
    Finalist: Equity Gap Fund of the Year
  • Enterprise Investment Scheme Association Awards 2006.
    Winner: Best EIS Fund Manager
  • Investor Allstars Awards 2006
    Winner: Young Personality of the Year (David Mott)
  • Unquote Private Equity Awards 2005
    Winner: Venture Capital House of the Year

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