Scottish Equity Partners (SEP) has raised £135 million to invest in UK-based clean energy projects.
The Environmental Capital Fund has been backed by a number of prominent names, including SSE plc and a syndicate of financial investors led by Lexington Partners.
The infrastructure fund will look to invest in hydro power, energy efficiency, heat pumps and district heating schemes.
Calum Paterson, managing partner, SEP, said: “This is another significant fund for us, which helps to broaden our reach without undermining our core focus. The market opportunity for energy infrastructure finance is very attractive, and the new fund fits well with our existing activities.”
Gregor Alexander, finance director of SSE added: “We are delighted to have the opportunity to complete the disposal and, at the same time, participate in SEP’s new fund targeted at small-scale clean energy projects throughout the UK. The transaction ensures our resources are fully focused on SSE plc’s core purpose of providing the energy people need in a reliable and sustainable way whilst supporting future investment in clean energy.”
SEP notes that the energy infrastructure market in the UK represents a good opportunity, especially the clean energy market which is ‘growing rapidly’. The company says that the requirement to replace ageing energy infrastructure has driven a demand in capital.