Launch of firm to encourage solar energy

Ethos Corporate Finance has secured multi-million pound funding to back the launch of Solar Capital, which is based in Doncaster.

The company has been founded to benefit from the Government’s new Feed-in Tariffs (FITs), which are designed to encourage investment in green technologies.

As a result of the first phase of the investment, it’s anticipated that hundreds of homes will be fitted with solar modules.

The FITS scheme allows homeowners who have solar modules fitted to the roof of their premises to use the energy generated to provide power for their property.

The homeowner’s existing energy supplier will pay money to them for the electricity that is produced, but not used in the property.

Some local authorities have adopted the scheme for council houses, but Solar Capital’s services are aimed at private householders, with the company retaining the FITs payment in return for installing and maintaining the modules free of charge.

According to Angus Fraser, a director of Solar Capital, the funding from Leeds-based Ethos should help it to expand rapidly.

Born and educated in Wellington, New Zealand, Mr Fraser trained as a chartered accountant, and was then sent to gain broader experience with Ernst & Young in the UK.

He became the first foreigner to be accepted into Ernst & Young’s insolvency department.

He is probably best known for his stint as chief executive of Hagemeyer UK.

In 2003, Mr Fraser, who was living in Harrogate at the time, saved Hagemeyer’s UK arm, which was on the brink of collapse.

Hagemeyer conducted one of Europe’s largest refinancing deals in 2003, which saved the business and the UK brands.

Mr Fraser played a key role in the discussions, which realised 460m euro in share capital, and a further 150m euro in convertible bonds.

It was very much a Yorkshire-led rescue mission, with Ernst & Young in Leeds, acting as advisers to the banking syndicate.

Today, Mr Fraser is carving out a new career in green energy.

Solar Capital was devised by Mr Fraser’s co-director Dr Henry Clemmey, a former University of Leeds academic who has worked in mining and associated industries for 40 years.

Dr Clemmey approached Ethos Corporate Finance to try and gain financial backing for his business plan.

Ethos introduced Mr Clemmey to Mr Fraser.

The two men decided to create a business and then secured funding from Downing, a City of London investment house.

Mr Fraser said yesterday: “Our approach will bring benefits to homeowners, who can have the solar modules installed free of charge and who should see their electricity bills cut by up to half.

“It will also support the local construction industry because we propose to use locally-based installation teams. We have employed a York University graduate in our office.

“We’re based in Doncaster and we want to start the roll-out of our installation in the Humber area because that is gaining recognition as a centre of activity for the renewable energy industry.”

Mr Fraser added: “How much we invest here, how many householders benefit and how many construction jobs we are able to support, all depends on the level of local take-up.

“We are able to operate nationally but it makes sense to start in Yorkshire, and to try and allocate all of the initial funding investment in this part of the world and then bring the additional funding here as well.”

Chris Silverwood, a partner at Ethos Corporate Finance, said investors decided to back Solar Capital because of the project’s potential and the track records of the management team.

“We are delighted to have been able to complete this first stage of fundraising for Solar Capital,” he said.

“Downing has formed a partnership with two first-rate opera-tors.

“I am certain that we are going to hear a lot more from this partnership.”

The company currently employs four staff, but hopes to hire more as the business grows.

Ethos plays a key role

ETHOS Corporate Finance, which has a base in Leeds, has played a vital role in a number of Yorkshire deals.

Last year, Poundstretcher co-founder Stephen Fearnley took a minority stake in doormat and soft furnishing supplier Primeur in a deal which saw the company secure more than £3.1m of new funding.

The deal, led by Ethos Corporate Finance, involved cash investment by Mr Fearnley and a new asset-based lending facility worth £2.7m, with Leumi ABL providing a £1.5m invoice discounting line, which was supported by a further £1.2m from Bank Leumi.

Bingley-based Primeur employs 65 people and supplies domestic doormats as well as rugs, cushions and other textiles to major retailers.