London-based Iona Capital Ltd on Monday announced the first close of its GBP 250-million (USD 333m/286m) Iona Environmental Infrastructure LP 3 fund.
The 15-year limited life pooled investment vehicle will focus on the UK bioenergy sector and will seek to invest in biogas, biomass, energy-from-waste (EfW) and energy efficiency projects. It aims to achieve returns of 11%-14%.
Iona has so far completed investments in 20 bioenergy projects. The firm says it is working with leading UK and international industry players, project developers and consultants to find long-term projects which it prepares for investment.
"We are particularly grateful for the renewed support from our existing Pension Fund Investors and look forward to building on the foundations laid by our previous funds," commented director Nick Ross.