A new renewables fund managed by the investment firm Downing has announced plans to raise up to £200 million as part of an initial public offering on the London Stock Exchange.
The company and other funds it manages will provide around £20 million of cornerstone investment, whilst its existing clients have pledged a further £10 million.
Downing Renewables and Infrastructure Trust (DORE) will use the proceeds to acquire a diversified portfolio of wind, solar, hydro and geothermal generation assets across the UK, Ireland and Northern Europe.
It has already identified, and is seeking the option to procure, a seed portfolio of 96MW of operational solar projects in the UK worth £50 million, and also had its eyes on another £1.5 billion of potential investments.
Tom Williams, head of energy and infrastructure at Downing, said: “DORE will focus on delivering sustainable income streams and capital growth by investing in a portfolio of renewable energy and infrastructure assets diversified not only by technology but by geography, project stage and revenue.
“By constructing a truly differentiated portfolio in this way, we reduce our dependency on any one renewable energy resource, any single jurisdiction and any one set of policies and regulations.
“Diversification introduces a natural hedge by reducing the impact of seasonal variability and increases the stability of revenues both throughout the year and year-to-year.”
Downing has managed investment in 116 solar arrays, windfarms and hydroelectric plants since 2010.