Earth Capital has successfully exited the UK Energy Efficiency Investments Fund (UKEEI) through the sale of the Fund’s assets via a GBP100 million IPO.
Earth Capital’s Nobel Sustainability Fund was invested in UKEEI alongside the Green Investment Bank, Earth Capital investee SDCL EEco (SDCL), the European Investment Bank and other institutional LPs. Earth Capital’s impact investing focus includes Energy Efficiency as a key sector, and is strongly aligned with SDCL’s investment strategy.
Gordon Power and Jim Totty worked with the SDCL team on transaction and investment management and sat on the investment committee of the Fund, with Gordon as Chair.
Energy Efficiency is the lowest cost source of sustainable energy, and represents an innovative and ground breaking asset class in impact investing. Energy Efficiency offers a compelling economic solution in the transition to sustainable energy. The marginal costs of saving energy are much lower than those for building new generation, and involve proven products and technologies.
The Fund made a series of pioneering investments in the UK Energy Efficiency market into assets such as LED lighting, Combined Heat and Power and biomass heat. Companies in the UK benefiting from the Fund’s investment include Santander, Citigroup, Moy Park, NCP, and St Bartholomew’s Hospital. Each host had modern energy efficient products installed by the Fund.
In December 2018, the SDCL Energy Efficiency Income Trust acquired the assets of the Fund in conjunction with its GBP100 million IPO.
Gordon Power and Jim Totty of Earth Capital said: “We are delighted at the successful sale of the portfolio of the UK Energy Efficiency Investments Fund. This marks yet another strong exit to add to our market leading 30 year sustainable private markets track record. Our partnership with SDCL continues to deliver strong cash returns to institutional investors in sustainability, through an active, hands-on impact investing strategy.”
Jonathan Maxwell and Joseph Muthu of SDCL said: “We are delighted at the acquisition of the UKEEI investments by the SDCL Energy Efficiency Investment Trust. Energy efficiency investment is the most cost-effective and rational way of reducing emissions and improving the security of energy supply, and the UK Energy Efficiency Investment Fund has pioneered Energy Efficiency private markets investment in the UK.”
