Venture capital firm Scottish Equity Partners has announced the launch of the Environmental Capital Fund (ECF) a £135m ($222.9m) infrastructure fund to invest in UK-based clean energy projects.
The fund is also backed by energy company SSE, which sold independent gas transporter SSE Pipelines to ECF for around £52.7m ($86.9m) to fund its involvement.
SSE will invest £13.8m ($22.7m) for a significant minority in ECF, which is also backed by a syndicate of financial investors led by private equity fund manager Lexington Partners.
The fund will target companies tackling clean energy infrastructure projects such as hydropower, energy efficiency, heat pumps and district heating schemes.
SEP partner Gary Le Sueur will manage the fund.
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.”