Acuity Capital Management is launching two venture capital trusts (VCTs) to invest in environmental infrastructure projects in the UK.
Acuity Capital Management is launching two venture capital trusts (VCTs) to invest in environmental infrastructure projects in the UK.
The twin-structure Acuity Environmental VCTs 1 and 2 are seeking £20 million between them to invest in projects focused on the disposal of organic waste and the conversion of that waste to energy. Their launch follows the imposition of ambitious government organic waste recycling targets for local councils.
Investment will be through a combination of secured debt and equity, targeting a tax-free running yield of 10 per cent and the return of investors’ capital within seven years.
Acuity’s aim is to invest in eight to 12 sites, with each site backed by at least a ten-year contract with a local authority or a company establishing a fixed volume of waste at a set price. Commissioning and building each site will take up to 12 months, after which it is expected to be cash positive, enabling the payment of dividends to investors in the second year of the VCTs’ life.
