UK – Pension funds have led the investment to purchase four UK wind farms in an income fund run by Resonance Asset Management.
The asset manager confirmed the closing of its British Wind Energy Income Fund with $100m (€73m) of commitments, up from the $35m it raised in February 2013.
The funding, led by investments from Northern European and UK corporate pension funds and a UK public sector fund, funded the purchase of four new operating wind farms, taking the total to five.
The farms have a combined total of 12 turbines generating 23.9MW of electricity, providing the fund with inflation-linked income due to government guarantees in pricing.
Resonance said the 10-year fund aimed for returns between 8% and 10% over a 10-year period, with returns delivered through distribution of income.
Nick Wood, chief executive at Resonance, said the manager was also considering further investments.
“We see attractive risk-adjusted returns in this area for our investors,” he said. “We very much look forward to further advancing our position in 2014.”
“There is much more to do in this market in the UK, and we will be looking to deploy further capital in this strategy.”