Former Man Group environmental specialist launches wind fund
Resonance Asset Management, an alternative asset management firm founded by industry veteran Nick Wood, has raised £35m in assets for its inaugural wind energy income fund.
With a distribution agreement in place via boutique investment bank, Dexion Capital plc, initial commitments were raised from pension funds, insurance companies and family offices. The fund is available to both UK and non-UK institutional investors.
The fund is ungeared and pays out all generated income to investors. Investors are seeking regular income linked to the price of wholesale electricity in the UK and the subsidies from the Renewable Obligation regime.
The offering will consolidate the fragmented ownership of operating small and medium-sized wind farms in the UK with generating capacity of 2MW to 10MW, providing wind farm developers with an exit on their projects. This will enable them to reinvest in further new wind farm developments.
The fund has recently signed its first wind farm acquisition, which is expected to complete shortly. Wood said he was delighted at the first close and to make a first investment within the month.
“We believe more institutional investors will appreciate the benefits of steady, low risk income from real assets, especially energy assets, to complement other income generating investments in their portfolios. We are actively seeking further investments of operating UK wind farms for our investors.”
Resonance Asset Management LLP was founded in 2012 by Wood (pictured), a former senior executive at Man Group plc where he was the founder and CEO of Man Environmental Capital Opportunities (Man ECO).
Resonance has a distribution agreement with Dexion Capital plc, a boutique investment bank focused on the distribution and placement of alternative funds and the provision of advisory services to the asset management industry. Founded in 2000 by Robin Bowie, Dexion has developed extensive knowledge of manager, fund structuring and investor requirements.
Since launch, Dexion has undertaken numerous fundraising and related activities amounting to over $11 billion. The company has extensive investor coverage of the UK and a number of European markets, covering pension funds, insurance companies, private wealth managers and family offices.