Tax efficient investment manager Deepbridge Capital has today (22 September 2021) announced an exit for investors in its Deepbridge Renewable Energy Enterprise Investment Scheme (EIS) fund.
Deepbridge Renewable Energy (1) Limited, a trading company within the EIS fund which constructed and managed wind turbines in Northern Ireland, has been sold to a private buyer, providing a 1.146x return for investors, excluding tax reliefs available under the Enterprise Investment Scheme.
Closed to funding in 2014, the Deepbridge Renewable Energy EIS provided investors with access to a portfolio of small-scale onshore wind turbines in Northern Ireland.
Deepbridge Capital is a venture capital investment manager specialising in tax-efficient investments and currently operates the Deepbridge Technology Growth EIS, Deepbridge Life Sciences EIS and Deepbridge Estate Planning Service, which solely invest in renewable energy assets with the aim of utilising Business Relief to mitigate inheritance tax.
Deepbridge Capital was advised by UK law firm TLT, specialists in clean energy and experts in corporate transactions including exits.
Ian Warwick, Managing Partner at Deepbridge Capital, commented: “We are delighted to have provided a positive return to investors on their investment in the Deepbridge Renewable Energy EIS. This return validates our cautious approach to investing in renewable energy, with our aim being to provide long-term growth to investors. Although renewable energy assets no longer qualify for Enterprise Investment Scheme tax reliefs, such assets remain the focus of the Deepbridge Estate Planning Service.
“Investing in renewable energy remains popular with financial advisers and investors seeking ‘green’ opportunities, with such investment supporting the UK Government’s drive towards renewables becoming a primary source of electricity, particularly in Northern Ireland, where all of our current wind assets are based. According to economy-ni.gov.uk, between January and December 2020, 49.2% of total electricity consumption in Northern Ireland was generated from renewable sources. In addition, of this 84.9% was generated from wind. During the same period, as reported by the UK Government, the rest of the UK sourced 43% of energy from renewable sources, with approximately 56% of this being produced by wind.”