Guinness Asset Management has announced the launch of Guinness EIS 4, a discretionary managed service set up to invest in UK sustainable energy companies.

The company is specifically targeting British sustainable energy businesses with predictable revenues, low technology risk and low correlation with other asset classes.

Tom Hill-Norton, Fund Manager, explained why sustainable energy companies in the UK are an attractive investment proposition, stating: “The UK has a number of powerful drivers that make sustainable energy investments particularly attractive right now: high and rising energy costs; attractive government incentives for renewables; and a maturing renewables sector with falling technology costs and increasingly experienced developers, installers and asset managers.

Hill-Norton added: “Guinness EIS 4 will continue our strategy of backing small-scale companies as these typically benefit from higher subsidies, lower competition for deals and on-site end users willing to enter long-term offtake agreements – all of which contribute to compelling financial returns. Our pipeline includes exciting new investment opportunities as well as follow-on investments in existing companies where we already have terms agreed.”

The company is offering renewable energy investment opportunities in a number of renewable projects, including biomass and photovoltaic projects registered under the FiT, RO and RHI schemes.  

Shane Gallwey, Fund Manager added: “The Enterprise Investment Scheme (EIS) is a proven way for investors to invest in small, early-stage companies. These companies are an essential part of the UK Government's growth strategy for the economy. EIS helps create jobs and tax revenues by providing capital to growing businesses, even where the banks won't lend.”

Tim Guinness concluded: “Guinness EIS 4 builds on the success of our first three EIS offerings. Sustainable energy in the UK continues to offer compelling investment characteristics.”