Germany’s BayWa last week announced its intention to initiate a... Read more →
UK asset manager plots fund sale
A London-based fund manager is lining up the sale of a portfolio of EfW and efficiency assets held via a dedicated fund.
Equitix is understood to have appointed Evercore to advise on the sale of the GBP 150m Equitix Energy Efficiency Fund (EEEF) earlier in 2022, and is projected to launch an auction process for the vehicle over the summer.
The 10-year fund launched in 2013 and has made close to a dozen investments in total.
On the larger end, this includes the 8MW Baddesley EfW plant in which it deployed GBP 37.8m in autumn 2017, with a further circa GBP 23m coming from other Equitix-managed funds.
The vehicle has also made investments in various other smaller EfW, biomass and lighting retrofit schemes.
EEEF had to write off its investment in the 15MW Speyside biomass plant, the holding company for which entered administration in autumn 2020, and which was subsequently acquired by Greencoat Capital earlier this year.
Greencoat Capital is also seen as a potential bidder for EEEF due to the EfW component of the vehicle.
However, the asset manager is less likely to be interested in other investments in the vehicle, such as its retrofit lighting and smaller-scale biomass schemes.
Entities such as SDCL meanwhile have dedicated funds earmarked for energy efficiency investments and could potentially have more appetite for this part of the portfolio.
Indeed, the diverse nature of the fund could mean that Equitix may receive offers for specific assets, although it is not known how open the fund manager would be to this approach.
Alternatively, the process could result in fund managers forming consortia.