The Press and Journal (Inverness, Highlands, and Islands)
Dore will invest in power of Scotland
North- east finance veteran Hugh L i tt l e has said that Scottish investments are more than likely for a new investment trust focused on renewable energy projects around northern Europe.
Downing Renewables & Infrastructure Trust (Dore), managed by investment house Downing, floated on the London Stock Exchange last month.
The initial public offering raised £ 122.5m, which Dore, with Mr Little as chairman, aims to invest in a portfolio of renewable energy and infrastructure assets diversified by technolog y, geography, project stage and revenue type.
L ondon and Cardiffb a s e d Downing has identified a pipeline of investment opportunities with an equity value of more than £ 1.5 billion across the UK, Ireland and other parts of northern Europe. Dore launched with a “seed” portfolio of £40m of operational UK solar projects in its immediate sights.
Mr Little, who built a successful private equity business at Aberdeen Asset Management (AAM) – now part of Standard Life Aberdeen – before becoming its head of acquisitions for 10 years, said that geographic and technological diversity was at the heart of the new fund’s investment strategy.
It would, therefore, be “astounding” if future deals did not include onshore and offshore wind energy or hydroelectric assets in Scotland, he added.
He also said Dore aimed to invest its funds “very quickly” and potentially “go back to the well” for more cash later this year.
Renewable energy is a “fascinating” sector and full of promise for sustainable investment returns, he said.
The fomer AAM man said environmental, social and corporate governance considerations were behind a growing number of organisations, including large pension funds, which “have to be seen to be doing something” about climate change, seeking investments in renewable energy.
Dore’s leadesrship team, boasting many years of investment experience, believe their approach will limit the fund’s exposure to volatile wholesale energy markets and reduce its dependency on any single technology in the hope of delivering more sustainable returns for investors.
They are targeting a return of 3% in 2021, 5% in 2022 and a “progressive policy thereafter”.
Just beore Christmas, Downing announced Dore had exchanged contracts for its first investment, a portfolio of eight operational hydropower plants in Sweden.
The energy assets are being acquired from
Fortum Sweden for £57.3m in a deal e xpec ted to complete next month.
“This is an exciting first acquisition for Dore,” Mr Little said.
“This portfolio of hydropower plants epitomises what we set out to invest in to be able to offer our shareholders stable and sustainable returns, while supporting the global efforts to combat climate change.”
Mr Little, 63, joined AAM in 1987 as only its ninth employee, having trained as a chartered accountant with Ernst & Young in Glasgow.
As well as his new role with Dore, he is chairman of the Clan Cancer Support charity and the north-east network of Edinburghbased venture capitalist Par Equity.
He is also a visiting professor and governor at Robert Gordon University, and a former director of Aberdeen Football Club.