Opalesque Industry Update – Resonance Asset Management, an alternative asset management firm, founded by industry veteran, Nick Wood, has raised £35m in assets for its inaugural wind energy income fund. |
With a distribution agreement in place via boutique investment bank, Dexion Capital plc, initial commitments were raised from pension funds, insurance companies and family offices.
The fund, advised by Resonance, is ungeared and pays out all generated income to investors. Investors in the fund are seeking regular income that is linked to the price of wholesale electricity in the UK and the subsidies from the Renewable Obligation regime.
The offering will consolidate the fragmented ownership of operating small and medium-sized wind farms in the UK with generating capacity of 2MW to 10MW, providing wind farm developers with an exit on their projects. This will enable them to reinvest in further new wind farm developments.
The fund has recently signed its first wind farm acquisition, which is expected to complete shortly.
Resonance founder and chief executive Nick Wood said: “We are delighted to both have a first close on the fund and make its first investment within the month. We believe more institutional investors will appreciate the benefits of steady, low risk income from real assets, especially energy assets, to complement other income generating investments in their portfolios. We are actively seeking further investments of operating UK wind farms for our investors.”