FUND OVERVIEW
Radiant Energy Ventures Fund I has been established to deploy investor capital towards onsite renewable energy solutions. These assets enable production, storage and regulate consumption of electricity at a lower price point than traditional utility. These behind the meter (BTM) solutions gradually minimize the reliance on the gird and deliver savings starting Day 1 of production. Their shelf life expands over 25-year and the compounding value generated are substantial. Commissioning of these assets attract 30% Tax Credits from Inflation Reduction Act (IRA) and generate revenue from Power Purchase Agreements (PPA). It is through these low-risk value streams where returns are generated for investors.
Value to Customers:
- OpEx improvement: Reduction in electricity cost
Price protection and Energy independence
Resolve capital constraints, upfront and ongoing
Accelerated pathway to Sustainability targets
Target Market:
Commercial and Industrial (C&I) properties across USA. (A highly fragmented and underserved segment)
- Addressable Market: 110 GW (C&I) vs. Current penetration (<5%)
Macro Conditions:
- Growing demand for electricity (AI, Bitcoin and EV)
- Decommissioning coal plants expected to drive higher electricity prices
Outdated Grid infrastructure
30% Tax Credits Bonus Depreciation State Incentives
Energy demand greater than supply (AI, Bitcoin and EV)
Outdated Grid infrastructure
Addressable Market: 110 GW (C&I)
Fund 1: 2.7 MW (.003%)
Current market penetration 3% (highly fragmented)
Decommissioning of coal and sources expected to drive electricity prices
A-1 Share Class
LONG TERM INVESTMENT VEHICLE
IRR, 10% target annual return
Minimum Investment
Stable, predictable income
PPA Revenue, tied to high credit tenants
Hold Period
GP Contribution
Similar to treasuries and CDs but a higher yield
Provisioned to deploy SDIRA capital
ILLUSTRATIVE RETURNS ON $100K INVESTMENT
| Illustrative LP Return | Totals | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | ||
| Capital Account | $100,000 | $100,000 | $80,000 | $68,000 | $56,000 | $44,000 | $32,000 | $22,000 | $12,000 | $- | |
| Return on Capital | $10,000 | $8,000 | $6,800 | $5,600 | $4,400 | $3,200 | $2,200 | $1,200 | $16,500 | $57,900 | |
| Return of Capital | $20,000 | $12,000 | $12,800 | $12,600 | $12,400 | $10,200 | $10,200 | $12,200 | $100,000 | ||
| Totals | ($100,000) | $30,000 | $20,800 | $18,800 | $17,600 | $16,400 | $13,200 | $12,200 | $13,200 | $16,500 | $157,900 |
Proactive Monitoring of the System
Insured
Best in Class Products
PPA Step-Ups
Predictive Maintenance
Automatic Remittance
Owner-Operated Business
A-2 Share Class
Fixed Annual Return
Minimum Investment
Stable, predictable income
Tax Credits are non-taxable
Hold Period
GP Contribution
Similar to treasuries and CDs but a higher yield
Low Risk Reward
Illustrative Returns on $100k Investment
| Illustrative LP Return | ||
|---|---|---|
| Year 1 | Year 2 | |
| Capital Account | $100,000 | $100,000 |
| Return on Capital | $8,325 | |
| Return of Capital | $100,000 | |
| Totals | $108,325 | |
NON-TAXABLE RETURN:
- Return on capital is a non-taxable event as tied to government tax credits
- Return of Capital is a combination of tax credits and cash
HOLD PERIOD: Within 18 months
ALTERNATE OPTIONS: As soon as the asset is active reductions can be made to the in-year tax liabilities improving cash flow
FIXED RETURN:
- 5.55% at 0% tax (Risk profile similar to a CD at high return)
- $8.325K/$100K* (12/18) = 5.55%
- Assumed tax rate: 35%
FUND MANAGEMENT
FUND 1 TIMELINE (MAY 2024 – MAY 2026)
INVESTOR COMMUNICATIONS
CAPITAL CALL AND DISTRIBUTIONS
BUSINESS IMPERATIVES:
- Government Policies at the Federal and State Level
- Global Supply Chain
- Local Manufacturing and Incentives
- Strategic Business Partnerships
- Energy Demand vs. Supply Trends
- Strategic Procurement (Material and Services)
- Emerging Technologies
