New York (HedgeCo.net) – Future Capital Partners (FCP), the £6 billion ($9.68 billion) hedge fund and alternative investment boutique, has launched a groundbreaking investment opportunity that will allow UK investors to invest in the rapidly growing Renewable Transport Fuels (RTF) sector for the first time.
The partnership expects to provide its investors returns of over 30% 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 £5m (including a £3 million ($4.8 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.
“RTFs are the investment opportunity of the future.” Tim Levy, CEO at Future Capital Partners said, “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 RTF production plants in the country. Climate change “is the moral issue of our time” (Ed Miliband) and “the greatest challenge facing humanity” (Lord Stern). Many of us believe that ranking not far behind are issues of oil reserves and price, together with food security. This project has at its heart all of these issues.”
“Investment in first generation Renewable Transport Fuels is essential to underpin investment in second and third generation technologies – and is a crucial step towards the long term goal of replacing oil in transport fuels (in the UK this accounts for about 70% of our oil imports).” Levy said.
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. EU and UK directives have indicated that by 2020 13% (estimated at 23 billion litres) of all the Europe’s petrol fuel must come from renewable sources. Currently, just 2 billion litres (or 3.5%) of the Europe’s petrol fuel comes from renewable sources, meaning that the petrol based Renewable Transport sector is set to grow more than ten-fold in the next decade.
“We believe this project is not only worthy of investment on purely commercial terms but also allows investors to be a ‘catalyst for change’ in an incredibly important way.” Levy said.
“It is a chance to capitalise on a non-correlated, niche investment of huge potential and at the same time benefiting from the risk controls we have placed around the partnership. Moreover, by securing off take agreements for the plant’s produce, we have done a great deal to ensure 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.” Levy concluded.
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