Ex-Cofunds chief executive Brett Williams has launched a new alternatives business which will target growth through the enterprise investment scheme market.
Old Burlington Investments is set to launch a duo of EIS funds in the shape of a Renewable Energy fund and an AIM Growth fund.
OBI has partnered with sector specialists for both launches. The group has teamed with solar PV asset managers Bluefield Partners, which is backed by venture capitalist John Moulton, for the Renewable Energy EIS, while the AIM Growth fund will be managed by SME private equity specialist Percipent Capital.
OBI is backed by private equity firm LW², which is co-owned by Williams, Tim Levy, Neil Lewis and Tim West.
Recent legislative changes are expected to increase the popularity of EIS schemes. The amount of money investors can place in EIS in any year is set to rise from £500,000 to £1m, as well as raising companies’ fund-raising limits under the EIS to £5m in any continuous 12 month period.
Williams says: “We believe alternatives are poised for very significant growth over the next three years, partly because of legislative stimulus and partly because investors simply are not getting the returns they need from traditional asset classes.
“We see a clear opportunity for a new business able to deliver access to potentially high return markets and we look forward to working with advisers to outline our professional approach and the ways in which our investments can add diversity and significant growth potential to their clients’ portfolios.”