In the UK, specialist bioenergy infrastructure fund manager Iona Capital Ltd (Iona) has the first close of the Iona Environmental Infrastructure LP 3, a GBP250 million (≈ EUR 282.5 million) 15-year limited life pooled investment vehicle.
According to Iona, the fund It offers investors the opportunity to participate in the emerging and fast growing asset class of Environmental Infrastructure with a particular focus on investments in UK bioenergy projects, using proven and low risk technologies backed by long-term supply and off-take contracts. The Fund is targeting returns of 11 – 14 percent composed of high, stable cash yields with strong downside protection.
Founded in 2011, Iona specifically targets projects in the biogas, biomass, energy-from-waste (EfW) and energy efficiency sectors and works closely with leading UK and international industry participants, project developers and consultants to source long term projects which it prepares for investment.
To date, Iona has led on and successfully completed investments in 20 projects within the bioenergy sector. Once an asset becomes operational the Iona Team maintain a hands on approach to ensure that the asset performance is optimised.
We are particularly grateful for the renewed support from our existing Pension Fund Investors and look forward to building on the foundations laid by our previous funds. UK Environmental infrastructure is a fast growing sector underpinned by a strong Government commitment to achieve world leading business excellence, commented Nick Ross, Director, Iona Capital.