Rcapital makes turnaround investment in UK renewables sector with Ad4Energy

25/09/2015

Rcapital, the UK based specialist investor, has made a significant turnaround investment in AD4Energy Limited.

Having already made a number of growth investments in 2015, the investment represents a rescue deal in a high growth sector, following the failure of predecessor Evergreen Gas.

AD4Energy Limited is the UK’s leading technology provider of small scale anaerobic digestion (AD) plants, with design and installation capabilities for AD plants that generate electricity at 250kW and lower. It is the main provider of AD to rural and farming communities, having initially commenced trading in 2011. This represents Rcapital’s first investment in the renewables sector.

Rcapital was introduced to the business days before it was due to cease trading upon an Administration of the company and acted quickly to conclude a transaction within days, finding a better solution for the various stakeholders. All employees have been retained and Rcapital has committed significant funding to ensure the business can meet its growth aspirations.

Bob Barltrop, CEO of AD4Energy, said

“The failure of Evergreen Gas was driven principally by the business growing too fast and the pressure that placed on working capital. The management team was impressed that Rcapital saw through the issues that most investors would have walked away from, and they backed the business with significant funding within days from the first meeting.”

The Rcapital team was led by Investment Director Chris Campbell, with COO Phil Emmerson joining the Board following the investment. Rcapital was advised on the transaction by Harrison Clark Rickerbys.

“AD4Energy has a unique technology in an exciting and fast moving market. The failure of Evergreen Gas was unfortunate, but we are confident that by engaging with the key stakeholders of the business we will be able to create a profitable and sustainable business for the future.”

Jamie Constable, CEO, Rcapital

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