Resonance Boosts Funds to $100 Million, Buys U.K. Wind Farms

January 13, 2014 by  
Filed under Green Energy News

Resonance Asset Management LLP
raised $100 million and bought four British wind farms as it
targets assets with long-term returns and state backing.

The U.K. company won commitments from institutional
investors including pension and insurance funds for its first
Resonance British Wind Energy Income fund, Chief Executive
Officer Nick Wood said. The venture has spent 86 percent of the
capital including its acquisition of the wind farms in Scotland,
Wales and northern England, he said.

The deal follows similar moves by Greencoat U.K. Wind Plc,
a British fund that buys U.K. wind parks from developers
boosting their cash flows and offering investors stable returns.
Investors such as retirement and insurance funds are buying into
renewable projects that can generate power for more than 20
years and receive state subsidies.

“They are very attractive, cash-generative assets for
institutional investors,” Wood said by phone from London. “We
see this end of the market as quite fragmented and starved of
exit capital, which provides us and our investors with an
opportunity to bring it in for developers.”

The company, established in 2012, expects to raise about
the same amount again this year seeking more than 50 megawatts
of small and medium-sized wind farms, he said. It is also
planning further funds that will invest in assets including
water, waste management and transportation, Wood said.

The wind farms purchased by the fund include the 6-megawatt
Bettyhill on the north Scottish coast from North British
Windpower and Invenergy LLC of Chicago. It also bought three
parks at industrial sites in Cumbria, Lancashire and Newport of
Wales totaling 11 megawatts from funds managed by HgCapital LLP,
Wood said. HgCapital said in a separate e-mailed statement the
sale completes the exit of its HgCapital Renewable Power
Partners fund’s U.K. investments, following the sale of its
RidgeWind investment to insurer Munich Re and Blue Energy Co.

To contact the reporter on this story:
Sally Bakewell in London at

To contact the editor responsible for this story:
Reed Landberg at

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