£80m ‘green bank’ cash in hands of fund managers

BUSINESS Secretary Vince Cable has handed out £80 million from the funds of the Green Investment Bank (GIB) to London-based fund managers.

The funds come from the Department for Business, Innovation and Skills’ (BIS) UK Green Investments (UKGI) unit ahead of the GIB getting the green light from Europe. The funding will jumpstart investment in small-scale waste infrastructure projects.

Cable said the allocation of funds meant BIS wasn’t “sitting on its hands” ahead of the establishment of the GIB in both Edinburgh and London, and which is expected to get clearance from the European Commission in September.

The £80m has been committed to two specialist fund managers, who will use the funds to “leverage” an additional £80m from co-investors, which is currently allowable under state aid rules.

An initial £50m will be managed by Foresight Group, a Sevenoaks-based venture capital trust. Another £30m will be managed by Greensphere Capital, which is chaired by venture capital veteran Jon Moulton.

Alan Somerville, energy director Scotland for Capita Symonds, said it was “neither here nor there” that the managers chosen were not based in Scotland.

Nathan Goode, the head of energy, environment & sustainability at Grant Thornton, said: “This is a competitive process, so open to fund managers from all over the country and selection will be based on competencies and sector knowledge.”

Cable said: “These first investments are a landmark. They represent a great opportunity to unlock commercial investment in green technologies and infrastructure. The government has committed to setting the UK firmly on course towards a green and growing economy and today is another important step in that direction.”