Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

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.'

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play French fund CEOs: 'Brexit is a lose-lose situation for all of us'

French fund CEOs: 'Brexit is a lose-lose situation for all of us'

'We'll all lose out - but London is an international city, Paris is not.' Leading French asset management CEOs tell us what they think Brexit will mean for the investment business.

Play Henderson Eurotrust's Stevenson: dealing with European cynicism

Henderson Eurotrust's Stevenson: dealing with European cynicism

Tim Stevenson talks about where he finds his opportunities in the current environment in Europe

Play Mark Barnett - part 2: why I'm not buying Lloyds

Mark Barnett - part 2: why I'm not buying Lloyds

In the second part of our exclusive video interview, Barnett explains why he has no intention of buying Lloyds, and where he sees the greatest income opportunities.

Read More
Wealth Manager on Twitter