Resonance Asset Management ("Resonance"), an alternative asset management firm, has raised GBP35 million (US$53.6 million) in assets for its inaugural wind energy income fund.
The distribution agreement of the fund is in place via Dexion Capital plc, boutique investment bank, and initial commitments were raised from pension funds, insurance companies and family offices.
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The fund, advised by Resonance, is ungeared and pays out all generated income to investors. Investors in the fund are seeking regular income that is linked to the price of wholesale electricity in the UK and the subsidies from the Renewable Obligation regime.
The offering will consolidate the fragmented ownership of operating small and medium-sized wind farms in the UK with generating capacity of 2MW to 10MW, enabling wind farm developers to reinvest in further new wind farm developments.
The fund has recently signed its first wind farm acquisition, which is expected to complete shortly.
Founded in 2012 by Nick Wood, a former senior executive at Man Group plc where he was the founder and CEO of Man Environmental Capital Opportunities (Man ECO), Resonance focuses on originating, distributing and managing real asset investment funds for institutional investors. The firm invests in long term, cash-generative real asset investments that deliver yield and diversification that is valuable to institutional investors.
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By GlobalDataWood said: "We are delighted to both have a first close on the fund and make its first investment within the month. We believe more institutional investors will appreciate the benefits of steady, low risk income from real assets, especially energy assets, to complement other income generating investments in their portfolios."
Wood added that the fund is "actively seeking further investments of operating UK wind farms" for its investors.
