Opportunities for Global Sustainable Energy: Investing in the World's Energy Transition
London Stock Exchange Group plc
According to Anthony Catachanas, Founding Partner and CEO of Victory Hill Capital Advisord LLP and investment adviser to VH Global Sustainable Energy Opportunities plc, London's listed investment funds market is uniquely suited to enable investors to access sustainable energy infrastructure assets globally.
What is the purpose of the fund, and why was it established?
The fund provides investors with direct exposure to a diverse portfolio of infrastructure investments aimed at hastening the transition to green energy. Direct investments in global energy infrastructure that support the UN Sustainable Development Goals are our priority.
We recognise that the energy transition and system change are global issues that require local solutions, so we are investing in energy infrastructure projects around the world. We are a buy-and-hold investor who has invested in assets that are assisting Mexico in its decarbonization efforts, solar sites throughout Brazil, and the UK's first net zero natural gas power engines.
Why is this strategy being launched in London?
This asset class has historically been institutional in nature and difficult for individuals to access. We needed a vehicle to provide that access, which the London Stock Exchange investment funds market provided.
The investment trust structure provides a solution for asset managers looking to bring private assets – particularly the benefits of global infrastructure assets – to individuals looking for long-term investment. The London Stock Exchange investment trust market is one of the only markets on the planet that can do this effectively and provide liquidity effectively.
One of the world's largest pools of liquidity is undeniably here in London, a global financial centre. We can not only access deep pockets of capital here, but we can also resolve mechanical liquidity issues via the investment trust structure. It's incredible that we're only now discovering this 150 years after the market's inception. It is the best format available.
What is the total amount raised by the fund?
Ours was one of the most recent large raises from a first-time fund and manager. We raised £243 million at the IPO, and with subsequent follow-on commitments, the fund now manages around £350 million in assets.
What unique opportunity does the fund provide that was not previously available on the market?
In the Investment Trust universe, there was no global fund focused on the energy transition. Our primary goal is to make a significant global impact. And one of the best places to do this is through a vehicle like this, where international investors can see and understand us because we are listed on a global stock exchange, and where we can easily make global investments.
What kinds of investors have you been able to contact?
We have a diverse investor base that includes wealth managers, pension funds, and institutions. We have investors from the United Kingdom, continental Europe, Australia, Canada, and the United States. We were very impressed by the breadth of investor access.
What does the fund's permanent capital structure allow it to do?
We can move away from market short-termism and focus less on market cycles. Long-term thinking allows us to weather market fluctuations.
What does your fund's receipt of the London Stock Exchange's Green Economy Mark imply?
We are honoured to have received the Green Economy Mark. It's a sign that the investment trust recognises that a large portion of its revenue comes from sustainable sources. It is consistent with our approach, way of thinking, and strategy.
Source: LSEG news