B VP In ve stm en ts L im ite d , Un it 23 , Th e Cu b e s 2 , B eacon Sou th Q u ar ter , San d y for d , Du b l in 1 8
Introducing The 2008/09 Simple.ie Green BES Fund Closing Date 31 March 2009 - Tax relief available- Investments spread over a portfolio of companies - Investments spread across a range of sectors - Experienced investment team – - Indicative prospective investments for our fund attached What is BES? The Business Expansion Scheme (BES) is a tax relief scheme introduced in the 1980’s to encourage investment in private businesses primarily in the small to medium sized enterprise (SME) sector. There are many examples today of successful businesses which have been funded by BES investment with over €55m BES investments made in 2007 (€50m in 2006). What is a BES Fund? A BES Fund is a fund designated by the Department of Enterprise Trade and Employment and the Revenue Commissioners to invest in BES qualifying companies. What tax relief is available? The tax relief enables investors to deduct the cost of their qualifying investment from their total income for income tax purposes. Who can invest in a BES Fund? Any individual can invest in a BES Fund from as little as €10,000 up to €150,000 in any one tax year. A typical BES investor is someone who: (1) appreciates a medium level of risk to generate returns above deposit rates and investment bonds (2) Has a minimum tax liability (after say his or her pension contribution) of €4,000 (on a €10,000
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investment) The ‘Green’ agenda Our overriding objective is identifying above average performing investments. The Investment Team Richard Hayes, Chairman and investment committee, founder and former MD of IFG Group plc, a public company with market cap of €100m+. David Gavagan, Director and investment committee, co-founder of Hibernia Capital Partners a VC fund of €80m. Elliott Griffin, Director and founder of BVP Investments Ltd, a corporate finance adviser and practicing accountant. Our sectors of interest include: Internationally traded services Wind farms and other renewables On a €100,000 investment (example): Potential Returns on Investment Sale Proceeds Net Cost of Investment Gross Gain Capital Gains Tax (@22%) Net Gain Annual Compound Return Food processing Recycling
€ 132,946 (63,000) 69,946 (6,969) 62,977 15% p.a.
€ 170,000 (63,000) 107,000 (15,121) 91,879 20% p.a.
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We charge a once off commission of 4% in addition to the cost of the investment. For example: Investment 4.0% Amount of Participation Commission Cheque Required € € € 10,000 400 10,400 50,000 2,000 52,000 100,000 4,000 104,000 150,000 6,000 156,000 The minimum amount of a subscription is €10,000 and subscriptions thereafter may only be made in multiples of €5,000 up to the maximum of €150,000.
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B VP In ve stm en ts L im ite d , Un it 23 , Th e Cu b e s 2 , B eacon Sou th Q u ar ter , San d y for d , Du b l in 1 8
For more information please contact us as: Phone: (01) 657 2900 Fax: (01) 443 0704 Email: info@simple.ie Web: www.simple.ie Fu l l p r osp e ctu s an d ap p l ica tio n f o r m a v ai l ab l e on r eq u e st BVP Investments Limited is authorized by the Financial Regulator in accordance with Section 10 of the Investment Intermediaries Act, 1995
The 2008/09 Simple.ie Green BES Fund – indicative investments to be made in 2009 The purpose of providing this information is to prove our ability to generate deal flow – one of the biggest challenges for a BES Fund.
Proposition Our existing investee companies Wave energy generation Description BES Investment
A company which is considered one of the leading developers of wave energy technology in its field. Its technology is ready for commercialization. The company has recently entered into a joint venture with one of its partner R&D international energy companies for development of a wave farm off the West coast of Ireland. Coinciding with our investment the Company is securing financial assistance from a new significant manufacturing partner. The company’s team is well developed collection of marine engineers, R&D specialists and large scale project managers. This would be a follow on investment from our 2007/08 Green BES Fund.
An investment of €500,000 from the BES Fund would be made on the basis of : A co-investment with Enterprise Ireland An arrangement agreed in principle with a large manufacturing partner A customer order agreed in principle for half scale live site delivery at end of year
Wavebob Limited www.wavebob.com
Biogas generation
Celtic Composting Systems Ltd www.celticcomposting.com
A company which is one of Ireland’s leading industrial composting companies. The Company has proprietary systems and exclusive technology licenses for innovative wet and dry fermentation systems used in the generation of biogas from MBT, green, food and farm waste streams. Biogas is a form of renewable energy which can be used for micro-generation of electricity. The opportunity to invest comes at a time when the Company is considering 6-7 sites for building their own biogas plants. This would be a follow on investment from our 2007/08 Green BES Fund.
An investment of €500,000 from the BES Fund would be made on the basis of : A co-investment with Enterprise Ireland Growth in the sales year on year in Ireland Agreement in principle with at least 2 site owners for leasing sites with planning permission for composting / biogas plant already granted
Energy information management
EFT Control Systems Ltd www.eft.ie
A company which is one of Ireland’s leading energy management system providers. The Company has a diverse range of large industrial clients in Ireland. It has recently established resellers in the UK and US and is generating revenue from also from each of these new markets. This would be a follow on investment from our 2007/08 Green BES Fund.
An investment of €200,000 from the BES Fund would be made on the basis of : Further investment from Enterprise Ireland Growth in the sales year on year in Ireland Sales orders in the UK confirmed Sales orders in the US confirmed
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The 2008/09 Simple.ie Green BES Fund – indicative investments to be made in 2009 The purpose of providing this information is to prove our ability to generate deal flow – one of the biggest challenges for a BES Fund.
Proposition New investment opportunities Conversion of plastics to energy A company which is one of the leaders in electronics recycling in Ireland who has acquired the exclusive rights to innovative technology for converting low value plastics waste into electricity. The Company has strong relationships with a number of global WEEE companies and has tendered to design, build and operate the technology on these customer sites. Prior to completion of an investment the Company is committed to having its first purchase order for a full site design, build and operate contract. With this new technology the Company will expand internationally and will generate significant additional revenue from commissioning fees and electrical revenues. An investment from the BES Fund would include the following: Ordinary share investment of €200,000 A co-investment with Enterprise Ireland Description BES Investment
Hybrid power generation for off grid locations
A company which provides hybrid renewable power generation systems to the commercial and industrial sectors which have superior performance in terms of cost and reliability. The Company’s initial market is the telecoms industry providing cost effective generators for off grid base stations. Off grid base stations are more common than expected even in developed countries in situations where planning restrictions apply. In developing countries, the market size is significant. The Company is engaged in pilot sites with and one Irish and one international mobile telephone operators.
An investment from the BES Fund would include the following: Ordinary share investment of €200,000 A co-investment with Enterprise Ireland
Air to Water Heat pump installation
A company which is a joint venture between a well established air conditioning company and one of Ireland’s largest renewable energy companies. The technology is well proven and the opportunity is to develop the Irish and UK market using the reach of both of the joint venture partners. The Company is engaged in revenue generating pilot sites. The installation of heat pumps in both commercial and residential is regarded as one of the most economical clean sources of heating buildings. Natural air is used to generate heat for heating space and water at a fraction of the cost.
An investment from the BES Fund would include the following: Ordinary share investment of €200,000 A co-investment with Enterprise Ireland
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The 2008/09 Simple.ie Green BES Fund – indicative investments to be made in 2009 The purpose of providing this information is to prove our ability to generate deal flow – one of the biggest challenges for a BES Fund.
Proposition New investment opportunities International Biofuels Consulting A company which provides biofuels consulting to some of the largest renewable energy companies in Europe. The Company’s speciality is Jutropha oil which is one of the first non-edible oils to be proven at commercial scale. Consequently there is significant demand from international energy companies. The Company has demonstrated unique expertise in meeting the very exacting sustainability requirements required to secure offtake agreements from one of the largest green energy companies in Europe. Plans continue for the introduction of further production capacity globally which we expect to drive demand for this Consulting firms services. An investment from the BES Fund would include the following: Ordinary share investment of €100,000 A co-investment with Enterprise Ireland Description BES Investment
Glass recycling company
A well established glass collection company which has established a processing operation which will sell its products in Ireland and the UK. Simple.ie raised investment of over €500,000 for this company in 2005 from a strategic partner who has provided expertise in the processing area to the board of the company. Additional debt financing secured by the company has further enabled it to develop a state of art processing plant.
An investment from the BES Fund would include the following: Ordinary share investment of €500,000
Total Pipeline size
€2,400,000
Details on all of the above investments are provided to give investors a clear indication on the prospective investments we intend making on behalf of the second Simple Green BES Fund. As is normally the case, completion of each investment depends on satisfactory conclusion of due diligence, negotiation of terms and the final decision of the board of BVP Investments, as Investment manager for the Fund.
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