Major new green energy fund acquires stake in Aquamarine Power
9 Jan 12
A new green investment fund has acquired a significant
shareholding in wave energy company Aquamarine Power it was
announced today. The deal sees the Environmental Energies Fund
(EEF) acquire a portion of the shareholding previously held by SSE
Ventures, the venture capital arm of SSE plc.
The £95 million secondaries fund has been formed to acquire and
invest in a portfolio of innovative UK based green energy
businesses originally backed by SSE plc.
The fund is managed by leading UK growth equity and venture
capital firm Scottish Equity Partners (SEP) and will operate as a
partnership between FTSE-100 listed SSE plc, one of the UK's
largest energy companies, and four blue-chip institutional
investors, headed by Lexington Partners, the world's largest
manager of secondary private equity funds.
SSE retains a significant interest in the fund along with a
number of substantial financial investors. EEF becomes one of
Aquamarine Power's larger shareholders, along with SSE,
multinational power and automation company ABB and Scottish
Enterprise, the Scottish Government's enterprise agency.
This follows the announcement in September 2011 that Aquamarine
Power had secured £7 million of new funding and a commitment of
further investment in the company from its existing shareholders
over the next two years. Existing shareholders subsequently
invested a further £4 million in November 2011.
Aquamarine Power CEO Martin McAdam said:
"This commitment by Scottish Equity Partners is another
tremendous vote of confidence in Aquamarine Power's Oyster
technology, our team, and the global market potential of wave
"SEP has a 20 year track record in helping innovative companies
grow and deliver value. Aquamarine Power is delighted to gain
the financial and strategic expertise of this highly regarded fund
manager along with the interest of substantial financial investors.
This deal now gives us the combined backing of SSE along with a
number of other major institutional investors.
"I would like to thank SEP, SSE and our other investors who all
remain exceptionally supportive of our business strategy."
SEP Partner Gary Le Sueur said:
"We are excited to join SSE, ABB, Scottish Enterprise and other
respected energy sector investors in becoming part of Aquamarine
Power, a business that is clearly emerging as one of the world's
leading wave power developers."
SSE's Finance Director Gregor Alexander said:
"SEP have a strong track record in helping innovative companies
such as Aquamarine Power grow and mature. By transferring a portion
of our shareholding in Aquamarine Power into the Environmental
Energies Fund, we expect the company to benefit from the track
record and expertise of SEP, draw upon the financial resources of
the new partners and ultimately deliver a better return on our