UK-focused specialist finance house Aurium Capital Markets has completed a £270 million fundraise for renewable energy projects.
The company, which reports that £100 million of the total was sourced from institutional pension pockets, credits the strength of the fundraise in part to the recent announcement by the UK government of plans to phase out coal-fired power plants completely in the next 10 years. Aurium believe this will lead to increased risk of blackouts and presents a strong case for the development of a strong pipeline of renewables projects to meet future demand.
Along with the fund news came a report denoting a 36 percent increase in the number of institutional pension scheme investors who are investing in infrastructure. Aurium research indeed shows that by the end of 2015 there were 185 pension schemes seeking infrastructure investments, compared to 136 in 2014.
“We are seeing more and more pension schemes investing in infrastructure, and we believe green energy projects here are very attractive for them,” said Aurium partner Steven Blase. “Not only do they improve the 'green' impact of their portfolios, they can pay an attractive return and there is very little correlation with mainstream asset classes.”
Last November , Aurium sponsored the launch of the £200 million Bioenergy Infrastructure Group (BIG), a UK-focused platform led by Infracapital .