Quercus sells renewables funds as it preps ‘new cycle’ of business

The London-based firm, which has long focused on Italian renewables, will pursue subsidy-free projects in Europe through ‘alternative instruments to traditional funds’.

London-based renewables investor Quercus Investment Partners has sold its fund management subsidiary Quercus Assets Selection as it begins what it describes as a “new cycle of investments”.

Quercus Assets Selection has been bought by Green Arrow Capital. The Italian firm has gained control of the five European and Italian wind and solar funds managed by Quercus Assets Selection, which hold about 320MW of operational capacity. In addition to two Italy-dedicated wind and solar funds, Quercus Assets Selection’s wider European investments include assets in the UK, Spain, Romania and Bulgaria. The oldest vehicle of the five, the Quercus Renewable Energy Fund, is a 2010 vintage.

Diego Biasi, co-founder and chief executive of Quercus, said in a statement that the group was closing “the first chapter” of its history.

“We have ongoing strategic conversations with investors,” Asif Rafique, a managing director at Quercus, told Infrastructure Investor. “The intention for us is to continue being very active in Europe and investing there within the energy transition as a whole.”

According to the statement, Quercus will look towards investing through “alternative instruments to traditional funds”.

“That comes down to how are we best positioned and where the outcome of the strategic conversations takes us – either a classic fund or a bespoke mandate,” added Rafique.

Beyond its wind and solar investments in Europe, Rafique said Quercus was continuing to develop a product through which to invest in electric vehicle charging infrastructure, though a fund has yet to be launched.

The firm had also formulated plans in 2017 to develop a 600MW solar plant in Iran. However, the plans were shelved following the reimposition of sanctions by the US.