Ingenious Infrastructure EIS
This offer is now closed
There is a newer EIS fund available from the Ingenious Infrastructure team:
This fund, Ingenious Infrastructure 2017/18 EIS AIF 1, 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.
- Invests in UK infrastructure projects
team: over 150 years’ collective experience, many have engineering backgrounds
return of 13–17% per annum, not guaranteed
investments with contractual assurances in place provide downside protection
in 3½–4½ years (not guaranteed)
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, 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.
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.
All fees will be charged by the manager to the investee company.
There is an initial fee of 5.5% through Wealth Club (a saving of 1% on the full charge of 6.5%). The full initial fee is made up of an arrangement fee of 1.5% and an initial monitoring fee of 5%. There is 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, including the Key Information Document.
Ingenious is involved in a long-running dispute with HMRC over some of its legacy film tax schemes. Recently, HMRC reportedly issued an order for investors to pay back millions of pounds in taxes. The issues relate to film production companies that we understand are unconnected to Ingenious’ current EIS and IHT offers.
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
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