The clock is ticking! There are only three weeks left to invest in Decentral Energy Capital (deadline 30 June 2021). In the past few weeks, we have covered some of the details of Section 12J investments, along with the excellent risk-adjusted investment returns and positive socio-economic impacts arising from an investment in Decentral Energy Capital. This week, we’re talking exit plans, and how our fund managers expect to secure investor liquidity.
Executive Director Luel Culwick recently gave a presentation about the Decentral Energy fund at the Grovest S12J Investor Summit. You can watch the video here.
Robust exit plans
Our fund managers are planning a liquidity event to enable our investor group to exit their investments. Returns will be maximised for our investors by selling the underlying asset portfolio under optimal conditions.
There is a lively and expanding private market for clean energy assets such as those owned by Decentral Energy Capital. In fact, we have received expressions of interest by reputable international Independent Power Producers who are actively looking to acquire a quality asset portfolio in South Africa. We are therefore assured that there is strong interest in and bona fide buyers for our asset portfolio.
The fund managers have no immediate plans to sell the portfolio, however. Rather, the strategy is to maximise the portfolio scale through gearing to a target of R250–300m. When the portfolio is fully at scale, revenues are proven, and macroeconomic conditions are suitable, DEC plans to dispose of the portfolio to an institutional investor, international IPP, private investor or asset manager, in an efficient and optimized transaction. This liquidity event will enable DEC to offer an exit to its investor group.
What happens to June 2021 investors?
Assets will remain in the fund until the conclusion of the 5-year investment term of each and every investor vintage, including the June 2021 vintage. We can confidently assure those who invest in June 2021 that their S12J incentive will become permanent, and they will be able to exit on or near 30 June 2026.
Please reach out to email@example.com if you have any questions or would like to secure a spot for this final investment window.
Bellville, Western Cape
- 1.2 MWp installed capacity
- 1 920 MWh clean energy generated per year
- 20-year Power Purchase Agreement signed
- 59 904 tons of CO2 saved over the system lifetime (30 years)