HgCapital was the first significant UK private equity firm to establish a dedicated renewable energy investment team in 2004 and we raised our first dedicated fund in 2006, following two years of deep sector research. In 2011 we closed our second dedicated renewable energy fund. Our team invests in utility-scale renewable energy projects in Western Europe using proven technologies such as onshore wind and small hydro, using an infrastructure fund investment approach. We focus on control investments and create industrial scale renewable energy platforms, seeking to aggregate a number of like assets and deliver economies of scale.
The renewable energy market is the fastest growing generation segment in Europe. It is an attractive investment opportunity, which is estimated to require significant capital investment over the medium term. Technological advances and the increased scale of the industry have increased the cost competitiveness of renewable energy which also provides favourable inflation linkage and a hedge against fossil fuel costs.
In response to these market drivers our renewable energy investment Theme is to focus on the most efficient technologies and best resource sites, requiring the least regulatory support and resulting in the lowest cost for the consumer. We invest in industrial scale to lower intrinsic costs and create strategic value.
We are the leading financial investor in onshore wind farms in Scandinavia and one of Ireland’s leading independent wind power producers. We also manage two large portfolios of large-scale solar photovoltaic plants and of small-hydro power plants in Spain. Our latest investment is in biomass district heating in Sweden where we currently operate three assets. Our dedicated team benefits from nine full time investment professionals and six support asset management personnel with several decades of combined industry experience.