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SEP launches Infrastructure Fund

Scottish Equity Partners (SEP) has raised £135 million for a new infrastructure fund to invest in UK-based clean energy projects.

The Environmental Capital Fund (ECF) has been backed by SSE plc, the FTSE 100 energy company, as well as a syndicate of financial investors led by Lexington Partners, the world’s largest independent manager of secondary private equity and co-investment funds.

The fund has been anchored with the acquisition of an existing SSE infrastructure business (SSE Pipelines).    SEP will use the balance of the fund to invest in a diversified portfolio of new, UK-based, clean energy infrastructure projects – such as hydro power, energy efficiency, heat pumps and district heating schemes.

ECF marks the first move into the infrastructure market for SEP, but complements the Environmental Energies Fund (EEF) launched in 2011, which acquired a portfolio of cleantech investments from SSE.

SEP Managing Partner Calum Paterson said:

“This is another significant fund for us, which helps to broaden our reach without undermining our core focus.  We are particularly pleased to extend our successful partnerships with SSE and Lexington Partners.  The market opportunity for energy infrastructure finance is very attractive, and the new fund fits well with our existing activities.”

SEP has recruited a new team to manage the fund, headed by Partner Gary Le Sueur.