Significant investment opportunities exist in energy and waste sectors, says Impax Asset Management....
Significant investment opportunities exist in energy and waste sectors, says Impax Asset Management.
Managing director Nigel Taunt says over the next five to 10 years a surge of new companies will be established to deal with the UK's need to find alternative solutions for waste disposal.
Investing in those companies early on will give investors a leading edge, he says.
"I think well over £1bn a year needs to be spent on new waste facilities over next 10 years. It is a lot of construction activity," adds Taunt.
One company poised to take advantage of this is New Earth Solutions (NES), which has a twofold approach by launching funds in this arena and creating waste treatment facilities at its sister companies.
NES is in the process of launching the New Earth Recycling and Renewable Energy sub-fund, aimed primarily at institutional investors and to be quoted on the Channel Islands Stock Exchange.
Adrian Jones, finance director at NES, says: Along with existing facilities, NES and its sister company have a substantial pipeline of projects to finance. The new sub-fund will invest in these projects, thus helping to ensure the development and growth of our network of facilities throughout the UK."
Taunt adds despite the economic downturn, ongoing demand for waste disposal will ensure these defensive companies continue to gain access to credit around disposal and will therefore be defensive companies to invest in.
"In last six months everyone's life has been made more difficult with the inability to raise money, but the waste market is still powering on.
"Hopefully the better companies those with good technologies and very strong fundamentals will still be able to find bank support."
NES's new fund will be available as of the 1 June, with a minimum investment of £250,000.
