The Carbon Trust launches new investment fund to exploit clean energy investment opportunities

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10 July 2006
The Carbon Trust today announced its intention to establish a new venture capital fund, to be listed on AIM, investing in small and mid-sized companies in the low carbon and clean energy technology sectors.

The Carbon Trust investment team has built up a successful track record of investing in these sectors over the last four years as part of its objective to accelerate the transition to a low carbon economy by stimulating investment in clean technologies.

The Carbon Trust Investments Clean Energy Fund will launch in the autumn and have an independent board, chaired by Lord Turner, former Chairman of the UK Pensions Commission, and advised by CT Investment Partners LLP. It will seek to raise up to £75m through an institutional placing. Altium has been retained as financial adviser to the fund.

The new fund will invest in sectors which will capture value through the transition to a low carbon economy, including renewables, solar generation, fuel cells, bio fuels and synthetic fuels. It is the first vehicle with this technology focus offering institutional investors a diversified portfolio of private companies operating in these sectors.

The fund will be managed by an independent board but draw on the Carbon Trust for investment opportunities from its own incubator and seed investments as well as benefit from its extensive knowledge, networking in the sector and technical expertise. Investments will also be sourced elsewhere. The fund will be a Jersey-based investment company and regulated by the Jersey FSA. Investments will be made primarily in the UK and also overseas.

Tom Delay, Chief Executive of the Carbon Trust, commented: “We believe in leading by example and a core part of our role in accelerating the transition to a low carbon economy has been demonstrating to the wider financial community that attractive returns can be made from clean technology investments. We aim to encourage wider institutional support for, and investment in, companies in the low carbon sector.

“Our own track record of investing in low carbon technologies is impressive and today’s announcement is a natural and exciting progression. Over the last four years we have invested in a range of companies that both reduce carbon and create shareholder value. Our investment portfolio is generating returns that are being used to support further investment activity. The Carbon Trust investment team has a successful track record in early stage investments in companies such as CMR Fuel Cells, Ceres Power and Ocean Power Delivery.”

Lord Turner commented: “The launch of the Clean Energy Fund represents an exciting opportunity for the investment community. The move to a low carbon economy is creating some very interesting investment opportunities which the performance, knowledge and expertise of the investment team will help exploit.”


 
 
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For further information on the Carbon Trust, please contact the Carbon Trust Press Office on 020 7544 3100 or carbontrust@fishburn-hedges.co.uk

For further information on The Carbon Trust Investments Clean Energy Fund, please contact
Nick Denton/Vanessa Orr, Hogarth Partnership, 020 7357 9477

The Carbon Trust

  • The Carbon Trust works with UK business and the public sector to cut carbon emissions and develop commercial low carbon technologies. An independent company set up by Government to help the UK meet its climate change obligations, the Carbon Trust creates practical business-focused solutions to carbon emission reduction on energy efficiency, carbon management, and investment in the development of low carbon technologies.
  • The Carbon Trust's annual funding is in excess of £105m in grants from the Department for Environment, Food and Rural Affairs (Defra), the Department of Trade and Industry (DTI), the Scottish Executive, the Welsh Assembly Government and Invest NI.
  • For more information on the Carbon Trust visit www.carbontrust.co.uk or call the Carbon Trust on 0800 085 2005

About CT Investment Partners LLP

CT Investment Partners LLP is an investment advisory firm established in May 2006 to provide specialist advice relating to investment opportunities in the emerging low carbon and clean energy markets. It is majority owned by the Carbon Trust and partly owned by its investment team, who developed and manage the Carbon Trust’s venture capital investment portfolio. It has applied for authorisation from the UK Financial Services Authority.