Ingenious Infrastructure EIS

This is the eighth Ingenious Infrastructure EIS. Since 2011, the Ingenious Infrastructure team has invested £500 million to finance, build and operate infrastructure projects across the UK.

Highlights

  • Invests in UK infrastructure projects 
  • Experienced team: over 150 years’ collective experience, many have engineering backgrounds
  • Target return of 13–17% per annum, not guaranteed
  • Asset-backed investments with contractual assurances in place provide downside protection
  • Exit in 3½–4½ years (not guaranteed)
  • Minimum investment £10,000

The offer

Ingenious believes the UK remains an opportune place for infrastructure investment due to regulation, supportive policy, property rights and strong financial markets. The UK Government has committed to invest over £100 billion in UK infrastructure from 2016 to 2021.

Ingenious Infrastructure EIS aims to develop infrastructure projects with these characteristics:

  • Predictable volume of sales
  • Revenue streams which are regulated or at a fixed price
  • Provides essential services
  • Asset backed: investment in high quality equipment which should retain saleable value
  • Low correlation with the stock market

The manager

The manager, Ingenious Infrastructure, is part of Ingenious Capital Management Limited.

The senior team has private equity investment experience, legal expertise and in-depth industry knowledge. Key people include:

  • Sebastian Speight set up Ingenious Infrastructure in 2011. He is responsible for investments in energy and infrastructure and sits on the investment committee for funds managed by Ingenious Capital Management Limited. He joined Ingenious in 2003, having previously been a Senior Associate in the banking group of Allen & Overy. He graduated from Oxford in 1990.
  • Guy Ranawake is an Investment Director in the Ingenious Infrastructure team. He holds a masters degree from Cambridge and qualified as a Chartered Accountant at PWC. He spent seven years at Evercore and has held several roles in corporate finance at various firms.
  • Baijui Devani is an Investment Director in the Ingenious Infrastructure team. He has an Economics degree from Cambridge and spent five years in the commercial team of one of the largest global independent power producers, Renewable Energy Systems Ltd. 

Risks

The usual risks with unquoted companies apply to this EIS offer. For instance, EIS investments are illiquid and capital is at risk. Investors should only invest money they can afford to lose. The value of tax relief depends on circumstances and tax rules could change. In addition, risks associated with this particular EIS include:

  • Commodity price risk – the investee company will attempt to enter into agreements with counterparties at a fixed price. As prices in the UK are variable such a counterparty may not exist. If it doesn’t, the investee company will be subject to fluctuations in price.
  • Construction risk – delays and increased costs are potential pitfalls for the project.
  • Operating risk – equipment breakages, labour disputes and spare pare shortages are all considerations here.
  • Counterparty risk – the investee company will enter contracts with counterparties. If they run into trouble the contracts may not be fulfilled.
  • Non-insurable risk – the usual industry insurance will be in place but there are some types of losses that are unlikely to be covered; for instance, terrorism or acts or war. 

Fees

All fees will be charged by the manager to the investee Company. There are initial fees of up to 6.5% (made up of an arrangement fee of 1.5% of the total capital invested in each investee company alongside an initial monitoring fee of up to 5%), an Annual Monitoring Fee of 1.5% of the total capital invested in the investee company, and a depositary fee of 0.075% per annum. Investors should be aware there is also an initial custodian fee of £25 per Investor and an annual custodian fee of 0.1%. There is a performance fee of 30% of returns in excess of 105% of gross subscriptions.

Full details of all fees and charges are can be found in the provider’s documents.

Key Information Document: Important Notice to Investors

Before you apply you should read and understand the important documents. Please note, the Key Information Document is not currently available for this investment. This is a new document we are required to provide to retail investors before they invest.


If you wish to apply now, please read the other important documents and ensure you are comfortable with the risks of investing. Then simply download, sign and return the declaration below alongside your application form and we will send you the document as soon as it is available. 

Key Information Document Declaration

Wealth Club aims to highlight investments we believe have merit, but you should form your own view. You should decide based on the provider's documents and ensure you have read and fully understand them before investing. This review is a marketing communication. It is not advice or a personal or research recommendation to buy the investment mentioned. It does not satisfy legal requirements promoting investment research independence and is thus not subject to prohibitions on dealing ahead of its dissemination. 21 December 2017

The details

Type
Fund
Sector
Various
Target return
13% to 17% pa
Funds raised / sought
£5 million sought
Minimum investment
£10,000
Deadline
None

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