Abundance Generation

  • FoundedApril 2012
  • HeadquartersEngland
  • FundingBetween $1 - $10 million
  • Sector-FocusEnergy
  • Stage-FocusProject-Based
  • SecuritiesDebt, Royalty-Based

Snapshot

Abundance Generation connects people with Energy Projects, allowing everybody to invest in and benefit from the growth of renewable energy in the UK.

Since its founding in 2011 Abundance Generation has raised more than $8 Million from 1,000+ investors to finance UK alternative energy.

Deal Flow

Abundance Generation connects investors with energy projects. Projects vary in structure, ranging in duration from 20-25 years. Individuals can invest as little as £5 and AG targets returns of 6-9% IRR.

Debentures are transferrable, allowing investors to sell investments before they fully mature, but these investments can be highly illiquid.

Abundance Generation offers three kinds of solar investment products:

  1. Variable Return Debentures, where the income you receive on top of your capital is linked to how much energy and therefore profit is generated. Two main factors affect the predictions of your estimated returns: the annual energy production for the project and the price the Energy Project achieves for selling its electricity. Each of these will vary slightly from project to project but the principle is the same. By focusing on mature technologies, we can more confidently predict how the estimated sun and wind energy in a given year will convert into electricity. This is then applied to the price of the energy, which is essentially fixed for the life of the project and rising with inflation for projects that are eligible for the Feed-in Tariff.
  2. Fixed Return Debentures, where the amount you receive by way of interest is fixed at the outset and remains the same for the life of the investment. As well as using conservative estimates to predict the amount of revenue projects will generate and the costs they will incur, cash ‘buffers’ are used to protect against any short-term shortfall.
  3. Inflation-linked Debentures, where both your capital and any additional interest are both increased in line with inflation each year. As well as using conservative estimates to predict the amount of revenue projects will generate and the costs they will incur, cash ‘buffers’ are used to protect against any short-term shortfall.

Fee Structure

Investor Fees

There are no fees or charges payable by UK investors.

Non-UK residents only pay a withdrawal fee of £25 (~$40) for each withdrawal of funds from their Abundance account to a bank outside the UK. This charge is deducted from the amount being withdrawn.

Issuer Fees

AG charges Energy Projects a fee for raising a Debenture. It also charges an annual fee for managing Debenture holders.

  • Setup Fee / Raise Fee Project-specific
  • Annual Fee 1.5% of the total Debenture raised

Executive Team

Bruce Davis

Managing Director

Bruce has spent many years devoted to innovating both finance and energy products and services. Clients have included egg, E.ON and Lloyds TSB. Realising they could only take his ideas so far, he directed his energy into creating Zopa. Now he is channelling that energy and insight into Abundance, enabling people to use their money to build a secure, sustainable UK. He is a Visiting Research Fellow at the Bauman Institute, Leeds University and a Fellow of the Finance Innovation Lab – a joint venture between WWF and the Institute of Chartered Accountants in England and Wales. Bruce is responsible for managing Abundance's brand and marketing team.

Louise Wilson

Managing Director

Lou left a senior position at UBS Investment Bank in July 2008, determined to do her bit to address the paradox of a world with finite resources and a way of life driven by consumption. Voted among the 100 most influential women in the City in Financial News, she knows only too well that conventional financial markets are loaded against the smaller, private investor. She is now using her skills to make sure our Debentures are working in the interests of our customers. Louise is responsible for managing Abundance's Energy Projects team.

Karl Harder

Managing Director

Karl started out working as a parliamentary researcher on renewable energy. With a desire to do more than simply write about the things he cared about, he set up his first green business, which also championed the Living Wage for its employees and was funded by the late Dame Anita Roddick. After 5 years and with his interest in energy renewed, he left to study for an MBA at Imperial College and to pursue the idea that has eventually became Abundance. Abundance brings together Karl's drive to link people and communities with renewable energy. Karl is responsible for managing Abundance's operations and technology teams.

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