Greencoat raises GBP 262m for 2nd solar fund

UK renewable investment manager Greencoat Capital LLP said today it has raised GBP 262 million (USD 353m/EUR 297m) for the first close of its Greencoat Solar II LP fund.

The money was raised from "some of the UK's largest corporate pension schemes" and will be invested in UK solar assets. According to the announcement, the vehicle will seek to acquire a portfolio of mixed-scale, ground-mount photovoltaic (PV) facilities in the UK and plans to hold them for their full life.

"We continue to see opportunity for UK solar aggregation in a busy secondary market upwards of £20bn in size," said Lee Moscovitch, partner at Greencoat Capital. Managing partner Richard Nourse commented that renewables are becoming mainstream investments for UK pension funds. "Many secure income markets are starting to feel quite crowded but the opportunity for solar to deliver at a substantial premium remains attractive," Nourse said.

The new fund comes after the September 2016 close of the GBP-295-million Greencoat Solar I LP, which is managed on behalf of a top-tier corporate pension scheme. As of last month, Solar I has invested more than GBP 260 million in more than 200 MW of solar farms ranging from 5 MW to 50 MW. Moscovitch said that rapid progress is being made with Solar II as well, with GBP 130 million under exclusivity.

(GBP 1 = USD1.348/EUR 1.133)

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