Alpha Real Capital (Alpha) has launched the Wind Renewables Income Fund (WRIF) a new fund predominantly investing in sub 5MW onshore wind assets in the UK, providing investors with secure inflation-linked long income.
The fund has recently acquired two portfolios comprising 4 operating assets with a total value in excess of GBP11 million.
Alpha secured subscriptions for WRIF totalling an initial GBP100 million in the first close from two investors, including the Towers Watson Secure Income Fund, a multi-manager fund managed exclusively for UK pension funds, and the Yorkshire and Clydesdale Bank Pension Scheme.
Alpha is a specialist real asset investment manager and currently manages circa GBP2.1 billion in Cash Flow Driven Investments (CDI) for UK pension funds, of which GBP300 million is in existing UK renewable assets including GBP215 million in onshore wind. Alpha manages one of the largest operating portfolios of UK Feed in Tariff (FIT) assets in the UK, and is also an investor in the ROC wind market and recently acquired two wind farms comprising circa 30MW of installed capacity.
Alpha differentiates itself through its proactive origination approach and its ability to access favourable pricing through aggregation strategies. Alpha is currently pursuing a substantial pipeline of over GBP150m in new onshore wind acquisitions.
Duncan Hale, Portfolio Manager of the Towers Watson Secure Income Fund, says: “Through seeding WRIF, we are continuing to support best in class fund managers for niche asset strategies that allow our defined benefit pension scheme investors to access secure, long dated and inflation linked cash flows. FIT wind assets continue to offer good relative value at a favourable premium to Index Linked Gilts.”
Scott Gardner, Partner Investment Capital, says: “We continue to listen to our investors in a spirit of partnership to create high quality investment propositions. The renewable energy sector continues to offer good relative value for investors seeking to cash flow match to their pension payment liabilities.”
Will Morgan, Head of Renewables and Fund Manager of WRIF, says: “We will be utilising our market presence and asset underwriting expertise to originate proven wind assets across the UK. Alpha works with existing owners to help them realise their assets quickly and efficiently, and with UK pension funds to secure long term inflation-linked cashflows.”
WRIF is part of Alpha’s renewables platform and Alpha’s wider stable of CDI assets including UK ground rents, long lease property and social long income.
