Scottish Equity’s SSE-Backed Fund to Invest in 10 Green Projects

Sept. 2 (Bloomberg) — Scottish Equity Partners LLP, a
U.K. venture capital company, plans to invest in about 10
British clean-energy and energy-efficiency projects from a new
fund backed by utility SSE Plc.

The 185 million-pound ($306 million) Environmental Capital
Fund will invest in small-scale energy efficiency, district
heating, small hydropower and heat-pump projects over the next
three years, Calum Paterson, managing partner at SEP, said today
by e-mail. Solar and wind farms don’t represent “as good
value,” he said. Projects have to carry a low technological and
regulatory risk, be U.K.-based and provide predictable earnings.

The money was raised from a group of investors that include
SSE and Lexington Partners. The fund already has bought SSE
Pipelines Ltd., which provides low-pressure gas connections for
homes and businesses, for 52.7 million pounds. All of the
investors in the new fund are limited partners in other SEP
funds and it was oversubscribed, Paterson said.

SEP also has a 95 million-pound Environmental Energies Fund
with SSE that invested in nine companies including Solar Century
Holdings Ltd., a sun-power business and Green Highland
Renewables Ltd., a small hydropower company.

To contact the reporter on this story:
Louise Downing in London at
ldowning4@bloomberg.net

To contact the editors responsible for this story:
Reed Landberg at
landberg@bloomberg.net
Alex Devine, Tony Barrett

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