The Service seeks to invest in Companies whose business models are based on building, acquiring and operating wind and hydropower renewable energy generation installations. The Companies will rely on proven technologies such that the output of electricity is both stable and predictable, and benefit from long term price support mechanisms mandated by the UK Government, such as index-linked Renewables Obligation Certificates. As it is anticipated that the Companies will engage in the construction of renewable energy projects, they will engage proven engineering, procurement and construction contractors as is normal in the industry.
The principal selection criteria for development projects include:
Preliminary accreditation for FiTs in place, or full accreditation for ROCs secured;
Full planning permission place;
All environmental licensing secured; and
An offer for Grid Connection received.
The investment strategy of the Deepbridge IHT Service aims to achieve long-term capital growth from investing in a portfolio of unquoted renewable energy companies, predominantly focusing upon wind power electricity generation. The companies selected by Deepbridge are characterised by their strong management teams, a high degree of asset-backing, and a business model based on Government subsidies for the generation of renewable energy namely:
Feed-in Tariffs (FITs): installers of FITs-qualifying renewable energies will receive a fixed tariff for each kilowatt hour (kWh) of energy they generate and a further minimum tariff for each kWh of generated energy that is not consumed but exported to the National Grid. Tariffs are set for the long term (typically 20 years from the date of installation) and are linked to the Retail Prices Index.
Renewable Obligation Certificates (ROCs):Renewable energy generators are rewarded with ROCs for every MWh of renewable electricity generated. ROCs increase the profitability of renewable energy generation as the certificates have an additional value over and above the price of the electricity itself. The UK Government has recently committed to ROCs until 2037.
Withdrawals will only be permitted by means of a Withdrawal Request submitted to the Manager in written form. There are no exit charges or penalties, but any gains on the withdrawal of your Subscription to the Service may be subject to CGT.
Withdrawals will usually be executed either by way of a transfer of BR Shares from the existing Investor to the new Investor (if request date is to be executed within the first two years after subscription). Withdrawals will be executed with reference to the most recent NAV at the time that the Withdrawal Request is processed.
The maximum amount that may be withdrawn by each Subscriber is 100% of the Subscribers holding, valued at the most recent share valuation as communicated by the Manager. Once a Subscriber withdraws his participation in full, he will be deemed to have exited the Service in entirety.
Investors must retain a minimum holding equivalent to the greater of either £50,000 or 75% of their Subscription in the Service, at all times.
The minimum withdrawal permitted (without exiting in full) to be applied for (in excess of distributions paid) per Subscriber, per year, is £25,000.
Investments made by the Manager are in unquoted companies and are therefore inevitably less liquid than listed shares. In particular, if there are a number of unusually large withdrawal requests, the fulfilment of such requests may take considerably longer than indicated above.
At all times, the Manager’s ability to facilitate Withdrawal Requests shall always be subject to liquidity constraints, is subject to the Manager’s discretion, and the terms of the Investor Agreement.
Sapia Partners LLP
Sapia Partners is an entrepreneurial and nimble firm, unencumbered by bureaucracy or politics. At Sapia Partners, we foster an entrepreneurial spirit by encouraging our employees at every level to bring forth their most innovative ideas to create value for our clients and business partners. We focus on three main business segments: Investment Management, Corporate Finance Advisory and Real Estate Advisory. Our team members have significant experience in creating value through investing in and advising on transactions across Europe and the US. For further information please visit http://www.sapiapartners.com/
Deepbridge Advisers Limited
Deepbridge is a different kind of investment manager. We work closely with financial advisers and investors to design innovative products, ranging from investment in technology growth companies to assetbacked renewable energy projects. We also partner with innovative and committed management teams to help UK based companies realise their potential and become successful leading-edge businesses. Deepbridge operates across four principle divisions: disruptive technology, sustainable technologies, life sciences and renewable energy. For further information please visit deepbridgecapital.com
Corporate Advisory and Arrangement Costs
Paid by the Investee Company: up to 5%
Annual Maintenance Fee
Paid by the Investee Company: 2% p.a.
Dealing and Custody Fees
Paid by the Investee Company: The Investment Adviser will charge each Investee Company a dealing fee of 0.65% on the sale and purchase of shares, and a Custody Administration fee of 0.50% p.a. for the provision of custody services.
The scheme is structured as Discretionary Managed Service and the Information Memorandum can be found here at Deepbridge.
6% dividend per annum after year 2 Or, a growth option
The investment strategy of the Deepbridge IHT Service aims to achieve long-term capital growth from investing in a portfolio of unquoted renewable energy companies, predominantly focusing upon wind power electricity generation. The companies selected by Deepbridge are characterised by their strong management teams, a high degree of asset-backing, and a business model based on Government subsidies for the generation of renewable energy.
Nominee & Custody Arrangements
The Nominee: Woodside Nominees Limited
The Custodian: Woodside