- First commitment of Border to Coast’s innovative UK Opportunities portfolio builds on existing £1bn of private market (and over £12bn in total) investments in the UK.
- £48.5m committed to Capital Dynamics Clean Energy UK Fund will drive expansion of new clean energy generation, supporting UK energy security and net zero goals.
- The Clean Energy UK Fund’s initial four wind farms, once operational, are set to deliver 193MW of energy to the UK grid, enough to power more than 46,000 homes, with further assets in the pipeline.
Border to Coast Pensions Partnership has made the first commitment within its innovative UK Opportunities private markets programme.
This bespoke investment strategy was launched in April 2024 to enable Border to Coast’s 11 Local Government Pension Scheme (LGPS) Funds to access high-quality investment opportunities in UK ‘productive finance’.
Building on its existing £12bn of UK investments, £1bn of which is in private markets, Border to Coast has committed £48.5m to Capital Dynamics’ Clean Energy UK Fund which will finance the build of onshore solar and wind farms as well as battery storage. The investment will be put to work constructing four wind farms in Scotland, set to add some 193MW of energy to the UK grid, enough to power 46,000 homes, with further sites in the pipeline.
“From the outset we said our UK Opportunities proposition would focus on adding value through delivering productive finance in the UK, and our first commitment on behalf of Partner Funds delivers just that. Capital Dynamics offers not only a strong investment opportunity, but also the ability to have a tangible impact on the future pipeline of renewable energy infrastructure that the UK sorely needs if it is to reduce its reliance on oil and gas and meet net zero goals.” Joe McDonnell, Chief Investment Officer, Border to Coast
Designed to direct long-term investment into productive finance assets, the £0.5bn UK Opportunities portfolio launched in April 2024 with a focus on ‘additionality’. It targets investment into sectors such as housing, transport, energy and growth finance expected to generate strong risk-adjusted returns while having a positive economic impact across the UK.
Cllr George Jabbour, Chair of Border to Coast’s Joint Committee, said: “The scale and sophistication of Border to Coast is enabling LGPS funds to access high quality investments in the UK which, in addition to delivering returns, is adding value to the country’s economic, social and environmental goals. UK Opportunities highlights the ability of pooling to deliver bespoke and specialist investment strategies for the LGPS.”
Barney Coles, Managing Director and Co-Head of Clean Energy, Capital Dynamics, said: “We are delighted that Border to Coast, via its UK Opportunities strategy, has chosen to join other global institutional clients in committing to our Clean Energy UK Fund. In so doing, Border to Coast has chosen to augment its leading role in the UK’s transition to a net zero energy system, whilst also benefitting from Capital Dynamics’ unique approach to investing in such assets, delivering attractive risk adjusted returns and positive local impact.”
Capital Dynamics’ Clean Energy UK Fund invests in renewable energy projects, primarily targeting onshore wind, solar, and battery storage. For all investments, the Clean Energy Team secures long-term, fixed-price power purchase agreements (PPAs), offering positive returns with strong downside protection.
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