Downing has raised £122.5m for its renewable energy trust out of a targeted £200m.
The Downing Renewables & Infrastructure Trust has listed on the main market of the London Stock Exchange, and is investing in a diversified portfolio of renewable energy-generating assets including wind, solar, hydro and geothermal, along with other infrastructure assets in the UK, Ireland and Northern Europe, targeting a net asset value total return of 6.5% to 7.5% a year over the medium to long term.
The investment manager has previously managed 116 investments in solar parks, wind parks and hydroelectric plans.
The trust qualifies for the London Stock Exchange’s Green Economy Mark, which recognises companies that derive 50% or more of their total annual revenues from products and services that contribute to the global green economy.
“Renewable energy plays a critical role in satisfying energy demand as Europe accelerates its transition away from fossil fuels in an effort to meet carbon reduction targets,” said Tom Williams, head of energy and infrastructure at Downing.
He added: “By constructing a truly differentiated portfolio, we reduce our dependency on any one renewable energy resource, any single jurisdiction and any one set of policies and regulations. Diversification introduces a natural hedge by reducing the impact of seasonal variability and increases the stability of revenues both throughout the year and year-to-year.”