Ingenious fund drops energy efficiency

The IPO of the Clean Energy Income fund will lower its maximum target and focus exclusively on wind and solar.

Ingenious Clean Energy Income (ICEI), a fund which is in the later stages of book-building for an IPO on the London Stock Exchange, has decided to remove energy efficiency from its remit and focus on just two of its three original themes – wind and solar.

The decision has been taken, according to fund manager Ingenious Clean Energy, because investors felt energy efficiency should be a separate strategy.

In a statement, the firm’s managing director Sebastian Speight said: “Investors are very interested in the concept of investing in energy efficiency projects in the UK, and understand the potential opportunity given our old building stock.

“Most investors, however, are further progressed in their understanding of investing in wind and solar assets and have told us that they would find it simpler if we were bringing to market two separate investment strategies.”

Speight said the firm “remains committed to energy efficiency and its potential returns, and is considering bringing a separate, dedicated energy efficiency fund to market in due course”.

The firm had originally stated that it was seeking to raise between £160 million (€191 million; $266 million) and £200 million from the IPO, but it is understood that £180 million is now viewed as a likely maximum amount given the strategic change.

Speight said investors had “reacted well” to the move.

A high proportion of the fund will already be committed at IPO with £146 million worth of contracted assets lined up – £70 million of which will be operational at the fund’s launch and £109 million of which will be operational by July this year.