VH Global Sustainable Energy Opportunities: investing in the world’s energy transition
Listed in February 2021
Market: Premium Segment of Main Market
Strategy: Investment in sustainable energy infrastructure
For Anthony Catachanas, Founding Partner and CEO at Victory Hill Capital Advisord LLP, investment adviser to VH Global Sustainable Energy Opoortunities plc, London’s listed investment funds market is uniquely suited to enable investors to access sustainable energy infrastructure assets around the world.
What does the fund do and why has it been launched?
The fund offers investors direct exposure to a diversified portfolio of infrastructure investments which are focused on accelerating the transition to green energy. We target direct investments in global energy infrastructure that support the UN Sustainable Development Goals.
We recognise that the energy transition and the change in the energy system is a global problem but one that requires local solutions, so we are investing in energy infrastructure projects around the world. We’re a buy-and-hold investor and have invested in assets that are helping Mexico to decarbonise, in solar sites across Brazil, and in the UK’s first net zero natural gas power engines.
Why launch this strategy in London?
This asset class has historically been institutional in nature and hard to access for individuals. We needed a vehicle that created that access and this is what the London Stock Exchange investment funds market provided us.
The investment trust structure provides the answer for asset managers who want to bring private assets – and it is particularly well suited to bring the benefits of global infrastructure assets – to individuals looking for long-term investment. One of the only markets on the planet that is able to do this effectively and provide liquidity effectively is the London Stock Exchange investment trust market.
One of the biggest pools of liquidity worldwide is undeniably here in London, which is a global hub of finance. Not only can we have access to deep pockets of capital here, we can also resolve mechanical issues around liquidity through the investment trust structure. It’s astonishing that we're discovering this – 150 years after the birth of this market. It is the best format out there.
How much has the fund raised?
Ours has been one of the largest recent raises from a first-time fund and manager. We raised £243m at IPO, and with subsequent follow-on commitments, the fund today has around £350m in assets under management.
What opportunity does the fund offer that was not previously on the market?
There was no global fund focused on the energy transition in the Investment Trust universe. Our focus is making a meaningful impact on a global basis. And one of the best places to do this is from London through a vehicle like this,, where international investors can see and understand us, because we are listed on a global stock exchange, and from where we can make global investments very easily.
What types of investors have you been able to access?
We have a very good mix of investors including wealth managers, pension funds and institutions. We have investors from the UK, continental Europe, Australia, Canada and the US. We were very impressed with the breadth of access to investors.
What does the permanent capital structure enable the fund to do?
We can get away from market short-termism and be less concerned with market cycles. Long term thinking allows us to ride out temporary shocks to the market.
What does receiving the London Stock Exchange’s Green Economy Mark mean to your fund?
We are very proud to have been awarded the Green Economy Mark. It’s a sign of recognition that a large portion of the revenues generated by the investment trust are coming from sustainable sources. It goes hand in hand with our approach, our way of thinking and our strategy.