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Gresham House snaps up £100m renewables fund firm

Gresham House snaps up £100m renewables fund firm

Gresham House has struck a deal to buy renewables and infrastructure asset manager Hazel Capital. 

The proposed acquisition, for an undisclosed sum, is expected to complete in the third quarter. 

The deal will be funded through shares issued at a premium to the current share price, plus a deferred earn out in cash and shares. 

As part of the deal, Gresham has also agreed to provide growth capital to Hazel through a secured loan for up to £4.6 million.  This money will be used to help the firm develop its immediate pipeline of energy storage system projects. 

The purchase is in line with Gresham's strategy to grow both organically and through acquisition, with Hazel sitting alongside the firm's real assets division. 

It also meets the investment objectives of the firm's British Strategic Investment fund, an alternatives fund focusing on infrastructure which was unveiled earlier this year. 

Gresham chief executive Tony Dalwood (pictured) told the market: 'We see a substantial growth opportunity in renewables and new energy infrastructure-related assets and today's announcement is the first step towards bringing a recognised expert investor in this growing sector into our group.  

He added: 'Hazel Capital's success in generating market leading returns through its VCT and EIS platform within the growth areas of infrastructure related asset management, fits well with our strategy to develop our range of alternative and illiquid investment solutions for long term investors.'

Hazel, which also specialises in loan investment, advises on more than £100 million of assets, run through a range of vehicles including venture capital trusts (VCT) and enterprise investment schemes (EIS). 

The Hazel Renewable Energy VCTs launched in 2010 and according to Gresham, have delivered net returns of over 50% before any tax benefit considerations since inception. 

'In Gresham House, the Hazel Capital team has found an exciting new home to realise its future growth potential in the new energy and infrastructure markets,' managing partner Ben Guest said. 

'The complementary skills, entrepreneurial drive and overlapping investment philosophy ensures an excellent fit.  We are very excited about our future as part of Gresham House.'

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