Gresham House is to buy renewable energy VCT and EIS manager Hazel Capital, which advises on assets of £100m.
Gresham House chief executive Tony Dalwood says the acquisition fits well with the asset manager’s strategy to build its range of alternative and illiquid investment products.
The asset manager already has a real assets division, which invests in forestry, infrastructure, energy and real estate.
“We see a substantial growth opportunity in renewables and new energy infrastructure-related assets and today’s announcement is the first step towards bringing a recognised expert investor in this growing sector into our group,” Dalwood says.
Gresham House points out that the Hazel Renewable Energy VCTs launched in 2010 have delivered net returns of over 50 per cent before tax benefit considerations.
Gresham House has now entered an exclusivity period until the end of the year for it to complete due diligence and the final terms of the deal.
It will be funded using shares issued at a premium to the current share price, plus a deferred earn out in cash and shares.
During the exclusivity period, Gresham House will provide a secured loan for up to £4.6m for Hazel Capital to develop its immediate pipeline of energy storage systems.