Jon Moulton’s newly formed Greensphere Capital and Foresight Group are to lead a new £80 million investment fund aimed at promoting green infrastructure.
A new initiative, which has been launched by business secretary Vince Cable, means that Greensphere and Foresight, whittled down from an initial shortlist of 23, will manage investments in the small scale waste infrastructure sector.
As part of the arrangement, all Department for Business, Innovation and Skills investments made by the fund managers will be match-funded, meaning £80 million more will be committed.
Cable comments, ‘These first investments are a landmark moment. They represent a great opportunity to unlock substantial commercial investment in green technologies and infrastructure.
‘Investing directly now shows that we are not just sitting on our hands while we wait for the UK Green Investment Bank to receive state aid approval.’
An initial package of £50 million will be managed by Bernard Fairman-chaired Foresight, and £30 million by Greensphere. According to a statement, single investments are not likely to be more than £15 million.
Sectors that will be targeted include waste recycling and reprocessing facilities, pre-treatment projects and energy-from-waste projects.
Moulton, who also runs turnaround fund Better Capital, believes the decision to award Greensphere the mandate is a ‘significant win’ for the firm and is a ‘vote of confidence’ for his team.
Divya Seshamani, managing partner at Greensphere Capital, says, ‘Large, high-quality institutional investors look to invest through institutional-grade fund teams.
‘Greensphere Capital has built a blue-chip team with a keen focus on creating value for these investors.’