With a distribution agreement in place via boutique investment bank Dexion Capital plc, initial commitments were raised from pension funds, insurance companies and family offices. The Guernsey-domiciled fund is administered by Dexion Capital (Guernsey) Limited.
The fund, advised by Resonance, is ungeared and pays out all generated income to investors. Investors in the fund are seeking regular income that is linked to the price of wholesale electricity in the UK and the subsidies from the Renewable Obligation regime.
The offering will consolidate the fragmented ownership of operating small and medium-sized wind farms in the UK with generating capacity of 2MW to 10MW, providing wind farm developers with an exit on their projects. This will enable them to reinvest in further new wind farm developments.
Shortly following the first close, the fund completed its first investment: Strath of Brydock wind farm was developed by Muirden Energy LLP and was commissioned in 2009. It is located near Banff in Aberdeenshire and has a nameplate generating capacity of 6.9MW from three Enercon E70 wind turbines.
Resonance founder and chief executive Nick Wood said:
“We are delighted to both have a first close on the fund and make its first investment within the month. We believe more institutional investors will appreciate the benefits of steady, low risk income from real assets, especially energy assets, to complement other income generating investments in their portfolios. We are actively seeking further investments of operating UK wind farms for our investors.”
Robin Fuller, an executive director of Dexion Capital (Guernsey) Limited, said:
“Guernsey has earned a reputation for its expertise in the formation and administration of alternative asset classes and, more recently, in the clean tech sector. This is a great example of a private equity clean tech investment structure.”