Mayor announces new £100 million fund to accelerate London-wide decarbonisation, in partnership with leading UK investor

Posted on: December 2nd, 2023 by Francesca.lorenzini No Comments

Mayor announces new £100 million fund to accelerate London-wide decarbonisation, in partnership with leading UK investor

New London Efficient and Decentralised Generation of Energy Fund will support new low-carbon infrastructure projects across London
Sustainable Development Capital LLP (SDCL) to partner with City Hall to manage the Fund

The Mayor of London, Sadiq Khan has announced a new £100 million fund to support decarbonisation projects across London in partnership with Sustainable Development Capital LLP (SDCL).

The London Efficient and Decentralised Generation of Energy Fund partnership will unlock additional investment from the private sector and enable many more organisations across the capital to make energy efficient choices. Sadiq has committed £50 million from City Hall which is to be matched by funds managed by SDCL, who will also manage the Fund.

London Efficient and Decentralised Generation of Energy Fund will invest in projects that have the capacity to achieve significant reductions in energy usage, greenhouse gas emissions or other pollutants across London. Building on SDCL’s expertise in low-carbon infrastructure, the Fund will focus on energy efficiency, on-site generation and clean energy solutions – areas key to helping London achieve net zero by 2030 – like installing building management systems, heat pumps, solar panels, and electric vehicle charging.

The London Efficient and Decentralised Generation of Energy Fund will play a vital role in increasing the level of private investment in low-carbon infrastructure in London, acting as a keystone investment for the London Climate Finance Facility, which also includes the Green Finance Fund. The London Efficient and Decentralised Generation of Energy Fund will fund numerous projects over the course of the next four years, accelerating London’s shift to net zero and solidifying London’s leading position as a city delivering climate action. The Fund will set a global example of how private finance and cities can work together to achieve decarbonisation goals by investing in projects that will promote green jobs and low-carbon infrastructure.

London was the first global city to declare a climate emergency in 2018 and Sadiq has set an ambitious target for London to reach net zero by 2030, ahead of the UK Government’s 2050 goal, to mitigate the most devastating impacts of climate change. The London Efficient and Decentralised Generation of Energy Fund is one of the many ways Sadiq is working closely with the private sector to help reduce London’s carbon emissions.

The Mayor of London, Sadiq Khan, said: “I’m committed to making London net zero by 2030 and this is achievable, as long as we work closely together to help deliver energy efficient and low carbon projects.

“This new fund will help us unlock additional investment from the private sector and enable us to support many more organisations across the city as they make energy efficient choices.

“London is a world-leading city and this fund will support hundreds of companies as we build a better, cleaner and greener London for all.”

Jonathan Maxwell, Founder and CEO of SDCL, said: “London is a global hub for servicing the transition and finding creative ways for private capital to play its full part in unlocking projects that are vital to get to net zero. Since SDCL launched we’ve worked with industrial customers around the world to help improve their economic competitiveness and drive their decarbonisation strategies. We’ve a long track record of working with municipalities too and I am delighted to work with the GLA and the Mayor Sadiq Khan on this latest initiative. As the C40 has made clear, cities are vital agents of change when it comes to net zero. With the London Efficient and Decentralised Generation of Energy Fund, London continues to lead by example and I look forward to seeing the types of projects we can help to deliver.”

Mark Watts, Executive Director at C40 said: “This new fund is exciting news and an important step towards accelerating the delivery of London’s carbon targets. By reducing the demand for energy and increasing the uptake of clean energy, this initiative will contribute significantly to phasing out the use of fossil fuels in the city – reducing emissions and improving air quality.”

Sustainable Development Capital LLP (SDCL)

Established in 2007, Sustainable Development Capital LLP (“SDCL”) is a specialist investment firm with a proven track record of financing and developing clean energy, energy efficiency and decentralised energy infrastructure projects in the UK, Continental Europe, North America, and Asia. SDCL was founded to facilitate investment into environmental infrastructure markets and has since launched several funds pioneering energy efficiency solutions. SDCL has raised several innovative energy efficiency investment vehicles, including the first such vehicle listed on the LSE. SDCL has also completed more than 50 green energy solution investments since 2007 and has over $2 billion of AUM. For more information, visit www.sdclgroup.com

About the London Climate Finance Facility

The Mayor’s 2021 manifesto committed to establish a finance facility to further his environmental aims. The GLA commissioned the Green Finance Institute (GFI) to advise on the approach and structures for a London Climate Finance Facility (LCFF).

The Green Finance Institute outlined options to create a London Climate Finance Facility. This includes the Green Finance Fund, which enables local authorities, social housing providers, NHS bodies, universities and colleges to access funding for their green projects and the London Efficient and Decentralised Generation of Energy Fund which will support any London organisation aiming to reduce their carbon footprint.

About the Green Finance Fund

The Mayor’s Green Finance Fund was launched at London Climate Action Week 2023 and will lend up to £500m to projects that help London meet its net zero ambitions. The aim is to accelerate decarbonisation by lowering the cost of borrowing for eligible organisations.

Sustainable Development Capital LLP Acquires Private Equity Firm Volery Capital

Posted on: November 30th, 2023 by philip.withers No Comments

Sustainable Development Capital LLP acquires private equity firm Volery Capital to create a ‘one stop shop’ for sustainable investment capital

• Sustainable Development Capital LLP (“SDCL”) acquires US-based private equity firm Volery Capital (“Volery”), expanding its investment offering and its North American footprint
• Acquisition strengthens SDCL’s position as the world’s leading energy efficiency investment platform serving commercial and industrial customers
• Move bolsters SDCL’s ability to provide capital to growth stage technology, software and services companies that are poised to scale rapidly
• The combined firm manages more than US$2 billion of assets across over 50 investments worldwide

SDCL, a world leader in funding and operating energy efficiency and decentralized energy generation projects, has acquired Volery, a US-based private equity firm focused on the energy transition. The transaction brings together SDCL’s extensive real assets expertise with Volery’s institutional private equity investment capabilities, enabling SDCL to participate in a broader range of energy transition opportunities focused on energy efficiency.

The combined platform will support SDCL customers that want to benefit from cleaner, cheaper and more resilient energy solutions by funding their energy efficiency and decentralized generation projects, as well as the underlying technologies, software and services that are propelling these energy solutions.

The Volery team, led by Managing Partner Emanuel Citron, and Partners Michael Pertnoy and Cort Ahl, will oversee SDCL’s private equity business going forward. They will work closely with SDCL’s real asset investment teams to invest in energy transition “picks and shovels” companies with proven business models that are ready to scale. As an owner and operator of more than US$2 billion of energy assets, SDCL is well positioned to help identify high quality opportunities and to be a strategic partner to its portfolio companies as they scale.
Volery has been a shareholder, board member and strategic partner of SDCL for several years. The two firms have collaborated on a variety of strategic growth initiatives and the acquisition capitalises on the strong synergies between the organisations. Ares Management and Folsom Point Funding, which had previously made minority investments in Volery, will continue as minority investors in the combined company. Volery will also continue to manage its existing private equity vehicles, including Volery Capital Partners Fund I and an energy transition mandate managed on behalf of ZOMA Capital.

SDCL and Volery are joining forces based on the shared belief that achieving decarbonization depends on rapidly scaling energy efficiency solutions. Energy efficiency solutions are largely overlooked by capital markets despite being the most near-term and most cost-effective source of emissions reductions available today. According to the International Energy Agency, 80% of CO2 emissions savings by 2030 are expected to come from proven technologies that are readily available, widely tested, and successful. SDCL’s private equity business will focus on high-ROI, proven technology, software and services solutions that enhance the performance of existing real energy assets, reduce energy demand and grow the opportunity for “behind the meter” solutions.

Volery was represented by Scott Naidech and Nicholas Usher along with support from the global tax, transactional and fund teams from Winston & Strawn.

Jonathan Maxwell, Founder and CEO of SDCL, said:
”We are in uniquely exciting times for the energy transition, and the financial sector has a vital part to play in delivering net zero. Sustainable Development Capital was founded with a view to help unlock capital to deliver decarbonisation at scale. We’ve been lucky to benefit from Volery’s support for many years and I am excited to bring them formally into the SDCL group to help us broaden the type of financing options we are able to provide. I look forward to seeing what can be achieved in private equity over the next decade as the world moves from making climate pledges to delivering on them at pace and scale.”

Manny Citron, Managing Partner of Volery, said:
”We have worked closely with Jonathan, who is a pioneer in the energy transition, and the rest of the talented team at SDCL for many years. Their in-house expertise, experience, relationships and processes position the firm to continue to scale distributed energy and energy efficiency solutions for years to come. For the energy transition to succeed, we will need to make private equity available to the growth stage companies building products and services that will, alongside important real asset initiatives, enable decarbonization. We are excited to continue to pursue this opportunity as part of SDCL, where together we can create a one-stop-shop financing platform focused entirely on the energy transition.”

Sustainable Development Capital LLP
Established in 2007, Sustainable Development Capital LLP is a specialist investment firm with a proven track record of financing and developing clean energy, energy efficiency and decentralized energy projects in the UK, Continental Europe, North America, and Asia. SDCL was founded to facilitate investment into environmental infrastructure markets and has since launched several funds pioneering energy efficiency solutions. SDCL has raised several innovative energy efficiency investment vehicles, including the first such vehicle listed on the London Stock Exchange. SDCL has also completed more than 50 green energy solution investments since 2007 and has over $2 billion of AUM. For more information, visit www.sdclgroup.com

Volery Capital
Volery Capital is a growth-stage private equity firm that invests in rapidly growing companies that power the energy transition. Volery’s portfolio includes technology, software, and services companies that are thematically focused on the energy transition and resource efficiency. Volery manages several private equity vehicles with an explicit focus on companies that address climate change and/or promote inclusive economic growth, as well as a particular mandate dedicated to investments that support grid modernization. For more information, visit www.volerycapital.com.

 

Michael Pertnoy

Posted on: November 30th, 2023 by Francesca.lorenzini

Cort Ahl

Posted on: November 30th, 2023 by Francesca.lorenzini

Emanuel Citron

Posted on: November 30th, 2023 by Francesca.lorenzini

Stephen Addai

Posted on: November 20th, 2023 by Francesca.lorenzini

SDCL Closes 650 Million EUR Green Energy Solutions Fund (GESF) with European Investment Fund (EIF) as Largest Investor

Posted on: November 20th, 2023 by Francesca.lorenzini No Comments

SDCL Closes 650 M Green Energy Solutions Fund with European Investment Fund as Largest Investor

Yuhan Zhang

Posted on: October 11th, 2023 by Francesca.lorenzini

Toby Richardson

Posted on: October 2nd, 2023 by Francesca.lorenzini

Jonathan Maxwell on CNBC

Posted on: July 10th, 2023 by dusted No Comments

https://cnbcmediahub.com/item/1709720c-4351-47e9-b1e3-4e2ee9febfeb