Aiming to invest in eight to twelve sites and seeking £20 million from retail investors, the majority of projects will be made up of anaerobic digestion technology, while the remaining few will be in-vessel composting sites. Envar, the waste management subsidiary of environmental consultancy ADAS, will be sourcing site projects, negotiating with local authorities and building and operating the plants.
Investment is to be through a combination of secured debt and equity, targeting a tax-free running yield of 10 per cent and capital return within seven years.
Acuity managing partner Nick Ross said: This is a unique opportunity for retail investors to contribute to and benefit from the UKs commitment to address the issues surrounding waste disposal and renewable energy generation. The fund has also been structured to generate strong returns for investors in a tax efficient way.
The investment firm expects to see an early return of capital and equity upside through structured exits, principally from debt refinancing. Building and commissioning the plants will take up to 12 months at which time Acuity believes the plants will be cash positive.