Border to Coast Pensions Partnership (“Border to Coast”) has made the first commitment within its innovative UK Opportunities portfolio on behalf of Partner Funds, driving capital into the build of new renewable energy infrastructure.

The LGPS pool, the largest asset manager outside London and Edinburgh, has committed £48.5m to Capital Dynamics’ Clean Energy UK Fund which will finance the build of onshore solar and wind farms as well as battery storage. Border to Coast Partner Funds’ capital will be put to work constructing four wind farms in Scotland, set to add some 193MW of energy to the UK grid, enough to power 46,000 homes, with further sites in the pipeline.

The commitment provides Partner Funds with access to a significant investment opportunity and the potential for strong long-term risk adjusted returns while supporting the UK’s net zero energy transition.

Joe McDonnell, Chief Investment Officer, Border to Coast, said: “From the outset we said our UK Opportunities proposition would focus on adding value through financing the build of new infrastructure and our first commitment on behalf of Partner Funds delivers just that. Capital Dynamics offers not only a strong investment opportunity, but also the ability to have a tangible impact on the future pipeline of renewable energy infrastructure that the UK sorely needs if it is to reduce its reliance on oil and gas and meet net zero goals.”

Designed to direct long-term investment into productive finance assets, the £0.5bn UK Opportunities portfolio launched in April 2024 with a focus on ‘additionality’. It targets investment into sectors such as housing, transport, energy and growth finance expected to generate strong risk-adjusted returns while having a positive economic impact across the UK.

Barney Coles, Managing Director and Co-Head of Clean Energy, Capital Dynamics, said: “We are delighted that Border to Coast, via its UK Opportunities strategy, has chosen to join other global institutional clients in committing to our Clean Energy UK Fund. In so doing, Border to Coast has opted to augment its leading role in the UK’s transition to a net zero energy system, whilst also benefitting from Capital Dynamics’ unique approach to investing in such assets, delivering attractive risk-adjusted returns and positive local impact.”

Capital Dynamics’ Clean Energy UK Fund invests in renewable energy projects, primarily targeting onshore wind and solar. For all investments, the Clean Energy Team secures long-term, fixed-price power purchase agreements (PPAs), offering positive returns with strong downside protection.