Local government pension pool LGPS Central and Dutch asset manager CVC DIF have taken a co-investment stake in Low Carbon Limited, alongside a successful debt raise for the clean energy firm.
Both investors have acquired an undisclosed stake in the London-founded company, which launched in 2011 and has since grown into one of Europe’s largest renewable energy platforms. Low Carbon develops and operates solar, onshore wind and battery storage projects across multiple countries.
The announcement comes just days after Low Carbon revealed it had raised £500m in debt from a consortium of European and Japanese lenders, including Société Générale, Santander, Norway’s DNB, and UK banks Lloyds, NatWest and HSBC, among others.
LGPS Central said it was drawn to the firm’s regulated, government-backed income profile through Contracts for Difference (CfDs). As one of the UK’s largest recipients of CfDs, the platform offers predictable, long-dated cashflows and plays a significant role in the country’s renewable energy supply.
Nadeem Hussain, head of private markets at LGPS Central, said: “This investment sits at the heart of our infrastructure strategy. Low Carbon’s vertically integrated model and strong contract profile provide the kind of long-term, productive exposure we seek for our partner funds. At the same time, it supports the UK’s transition to clean energy, contributing to national resilience and the development of a modern, sustainable power system.”
LGPS Central currently has around £2bn invested in infrastructure but expects that allocation to grow as it takes on seven new partner funds, pushing its combined assets under management above the £100bn mark.
