The fund enables investment in domestic solar power, giving participants the opportunity to take advantage of returns available from renewable energy production and particularly solar installations.
Under plans outlined to investors, the fund has negotiated to buy large numbers of pre-installed domestic solar systems across the UK. These are expected to generate a stream of income through the UK Feed in Tariff regime, under which a premium is paid for electricity generated from renewable sources.
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It is understood that the value of the fund is expected to top £3m by the end of the week, with potential to secure up to £10m of investment in the medium term.
The successful closing of the fund demonstrates the continued attractiveness of Enterprise Investment Scheme (EIS) funds which provide significant tax incentives for investors - something which forms a key part of the coalition government's plans for economic growth. However, following announcements made in the recent Budget, the window for the creation of further funds of this type is expected to close on 5 April next year.
Paul Sutton, a Corporate Partner in McGrigors' Energy team, says the fund is "proof, were it needed, that there is plenty of appetite for EIS structures and for investment in local green energy initiatives" and that "this should give the government pause for thought".
"The successful closing of the Goldfield fund demonstrates the demand among investors for this type of product. It seems unfortunate that the government should be seeking to effectively block the establishment of these types of fund in future when they could play a prominent role in supporting renewable energy infrastructure development."
(GK/KMcA)
