Foresight launches £20m EIS Fund

14 December 2009

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Foresight Group has launched its latest fund, Foresight Environmental Enterprise Investment Scheme (EIS) Fund 2, a £20m vehicle that offers tax relief to its investors. The UK-based fund has a lifespan of between seven and nine years, with a two-year investment period. The minimum subscription for the vehicle is £10,000, while GP contribution is historically about £250,000. Terms and conditions are industry standard; management fees are 2%, while carry is 20%. Martineau provided tax advice.

Investors

The fund is seeking investments primarily from high-net-worth individuals based in the UK, who can benefit from the EIS tax scheme.

Investments

The new fund will make investments of between £1-2m in later-stage environmental UK-based businesses through a combination of management buyouts and the provision of growth capital. While the companies are based in the UK, they can have a wider, more international focus. The vehicle expects to make between 6-12 investments over the next two years. The fund is open to making co-investments; historically, however, the GP has not needed to take this route. Foresight Environmental EIS Fund 2 expects to close in the next 6-12 months and hopes to complete its first deal in Q1 of next year. The target IRR for the vehicle is 20%, taking into account the available tax reliefs.

People

Donald Maclennan is the main manager of the fund, alongside Sonia Powar and Chris Price. The fund investment team is also supported by the environmental division at Foresight.

Fund: Foresight Environmental Enterprise Investment Sscheme Fund 2

Target: £20m

Focus: Later-stage, environmental, UK

Contact: Donald Maclennan

Address: Foresight Group

ECA Court

South Park

Sevenoaks

Kent

TN13 1DU

Phone: +44 1732 471800

Fax: +44 1732 471810