Pioneer Point Partners is acquiring biomass fuel supplier Esken Renewables for £108m (€125m).

The infrastructure fund manager said it has agreed to buy Esken Renewables on behalf of its European sustainable infrastructure fund and plans to continue to scale the business.

Esken Renewables, owned by Esken, supplies 1.7m tonnes of fuel to the UK biomass sector under long-term contracts. The majority of the renewable biomass fuel comes from waste wood which otherwise would be destined for landfill.

Pioneer Point’s debut fund, which was launched in 2020, has now completed seven investments. The fund held a €575m final close in February 2022, exceeding its initial €500m target.

The lower mid-market value-add fund is targeting a minimum internal rate of return of 15% over 10 years, including an annual cash yield of 4-6%, by creating a diversified portfolio of eight to 10 investments.

To read the latest IPE Real Assets magazine click here.

Topics