Investments  

Stil VCT in early bird discount to advised clients

The founder of Sustainable Technology Investors Limited said he had seen growing demand among advisers for VCTs and EIS funds within the sustainable investment space.

This has prompted the recent launch of Elderstreet VCT’s sustainable technology share offer, which aims to raise £15m for the current tax year before the 4 April deadline.

Stil is the investment adviser to the Elderstreet VCT and Mr Power said that advisers who put their clients into the VCT before 28 February would see them benefit from a 2.5 per cent extra share offer, as well as a target 4p a share dividend each year.

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The move comes after Stil opened an approved EIS Fund 2 following the close of its EIS Fund 1, which raised £5.4m last year.

The new EIS will target returns of £1.25 a share after costs for a four-year period. This equates to a 79 per cent return on a net 70p invested, taking into account the 30 per cent income tax relief available under EIS rules.

Mr Power said: “We are investing into businesses that have strong cash flow and good governance. You have to be hard-nosed about what is and what is not a good investment. We have a team of experts behind us looking at the various companies, whether operating in the hydro energy or biomass industries, to see which business structures are robust.”

Adviser View

Richard Troue, head of VCT research for Bristol-based Hargreaves Lansdown, said: “Stil is managed by a team with experience in the sector, which is positive, and they have identified a good pipeline of investment opportunities.

“The combination of investing in income-generating renewable energy projects and more traditional venture capital investments in sustainable technology companies could be a good combination.”