BR Report 2019

56 57 BLACKFINCH BLACKFINCH ADAPT IHT PORTFOLIOS ABOUT THE PROVIDER Blackfinch Investments is part of Blackfinch Group, an award- winning investment specialist with a heritage dating back 25 years. Bringing significant experience and expertise with a transparent approach, Blackfinch is entrusted with over £200 million in assets under management and administration. Blackfinch holds its values as core, constantly adapting to and evolving with market change. Blackfinch Investments offers tax-efficient solutions to meet customers’ needs, reflecting legislative developments and evolving client requirements. Our popular Inheritance Tax (IHT) range draws on Business Relief for a more efficient route to IHT mitigation. It includes the Adapt IHT Portfolios and Adapt AIM Portfolios for individuals, and the Thrive Corporate Management Service for businesses. We are focused on safeguarding clients’ investments, from targeting qualifying businesses, to charging lower fees, to working to deliver a fair and transparent return. For more information, please visit blackfinch.com . OUR BR OFFER The Adapt IHT Portfolios allow investors to mitigate IHT and preserve wealth, with return potential. They can enable IHT exemption after just two years, and if investments are held at death. They also offer investors flexibility, with control over and access to capital. Investors have the choice of two portfolios, one focused on capital preservation and one for investors seeking growth, alongside capital preservation. Similarly, investee firms have a focus on security. Blackfinch’s specialist team brings access to opportunities in property lending, renewables and asset-backed lending, with underlying security over assets and reliable revenue streams. Launched in 2013, the portfolios are well established in the market. This is reflected in the outstanding review the service received in February 2019 from MJ Hudson Allenbridge. The review included a score of 85 and praise for higher returns, lower charges and robust processes. INVESTMENT CASE STUDY The Adapt IHT Portfolios have provided a development loan of circa £2.4 million for the development of a two-storey hotel on the outskirts of Liverpool. The hotel is a Grade II-listed period property with large, modern extensions built in the 1960s and also includes a 17-acre site. The development will be used to transform the building into a four- star hotel with associated food and beverage operations, and spa facilities that also functions as a wedding venue. Location Liverpool Finance arranged Circa £2.4m Finance Period 11 months Security First Charge Loan to Value 31% Status Active GROWTH PORTFOLIO TYPICAL ASSET ALLOCATION PROPERTY DEVELOPMENT LENDING RENEWABLES ASSET-BACKED LENDING CAPITAL PRESERVATION PORTFOLIO TYPICAL ASSET ALLOCATION PROPERTY DEVELOPMENT LENDING RENEWABLES ASSET-BACKED LENDING DEEPBRIDGE DEEPBIRDGE IHT SERVICE ABOUT THE PROVIDER Deepbridge was founded with the aim of building an investment team that could redefine tax-incentivised risk capital. Our purpose is to provide reassurance to investors by enabling them to invest alongside our team of passionate and experienced domain specialists. A genuine blend of skillsets from a cohesive team that know what it is like to run a business and who have a balanced approach between strong management, practical experience, and demonstrable governance. Deepbridge encourages investors to understand the underlying investee companies within any portfolio and the Deepbridge IHT Service aims to allow subscribers to invest in physical renewable energy assets which qualify for Business Relief. Having considerable experience in the renewable energy sector, Deepbridge has previously successfully raised and deployed funds in to UK based wind and hydropower projects via the Deepbridge Renewable Energy EIS and Deepbridge Hydro EIS. OUR BUSSINES RELIEF INVESTMENT APPROACH The Deepbridge IHT Service is designed to deliver a portfolio of Business Relief qualifying renewable energy companies that look to have a high degree of asset-backing, and a business model based on the UK Government subsidies for the generation of renewable energy. The Deepbridge IHT Service has a target return of 6% per annum. Potential subsidies: The UK Government offers subsidies to the renewable energy sector, including Renewable Obligation Certificates, Feed In-Tariffs and contracts for differences. Seeks to avoid planning risk: Investments will be made in projects with all the necessary permissions in place, providing a known cost base for the investment. Proven technology: The use of proven renewable energy technologies that allow levels of energy production to be forecast with a good level of accuracy. INVESTMENT CASE STUDY Easton Renewable Energy Ltd is the current trading company within the Deepbridge IHT Service. Following inception, the company’s trading activities initially focused on the development of a number of on-shore wind turbines sited in Northern Ireland, benefitting from Renewable Obligation Certificate subsidies. Now that such subsidies have closed to new developments, the company is focused upon acquiring and operating other established renewable installations, which may include: • Larger-scale wind turbines across the UK (which are considerably less reliant on subsidies); • Small-scale run-of-river hydropower installations; • Anaerobic digestion (by which the power is derived from biogas); • Biomass (the production of energy from burning wood and other organic matter). The trading objective of the company remains agnostic to the nature of the renewable energy revenue generation, as long as the aggregate revenue projections for the operating assets support the company’s objective of a target return of 6% per annum. DEEPBRIDGE IHT SERVICE ASSET SPLIT (31 DEC 2018) ONSHORE WIND RUN-OF-RIVER HYDROPOWER ANAEROBIC DIGESTION 67% 12% 21%