ThomasLloyd Energy Impact has selected Octopus Energy Generation as its transitional investment manager. Heads of terms have been agreed between the company’s AIFM, Adepa Asset Management S.A. and Octopus Renewables Limited for Octopus Energy Generation to be appointed.
The board received proposals from, and conducted detailed discussions with, a number of experienced investment managers. Octopus Energy Generation was selected based on its expertise in developing, constructing and managing renewable energy assets, managing a UK-listed investment company and its depth of immediately available resource, which includes on-the-ground personnel with construction and investment experience in Asia, as well as the strength of its network in the sustainable energy infrastructure marketplace.
Octopus Energy Generation is a specialist energy investment manager with a mission to accelerate the transition to a future powered by renewable energy and has approximately £6bn in assets under management. Its portfolio currently includes more than 240 large-scale energy assets across 15 countries and eight technologies with a combined capacity of 3.3GW, managed by a team of around 130 renewable energy specialists across five teams (Investments and Development, Fund Management, Finance & Operations, Asset Management and Risk and Compliance) working from offices in the UK, continental Europe, North America and Singapore. The statement says that Octopus Energy Generation has a best in class approach to ESG and impact, managing all investments through the lenses of performance, planet and people. It is currently the manager for four investment vehicles which are classified as Article 9 under the Sustainable Finance Disclosure Regulation.
Senior members of the Octopus Energy Generation team have been responsible for the development and construction of solar farms and other renewable energy generation assets worldwide, including in India and other Asian markets.
The board feels that Octopus Energy Generation’s considerable experience will ensure effective oversight of the existing operating portfolio, the expected construction of the 200 MW DC solar PV project in Rewa Ultra Mega Solar Park in India (the “RUMS Project”) and the development of the company’s 150 MW DC solar PV project in the State of Maharashtra, India.
Octopus Energy Generation’s immediate priorities will be to finalise the 31 December 2022 and 30 June 2023 valuations, 2022 audit and accounts and 2023 interim report and ensure the suspension of admission to listing and trading of the fund’s shares is lifted as soon as possible. This process will include undertaking detailed due diligence on the operating assets to ensure the completeness and accuracy of all information required to finalise the outstanding valuations, audit and financial reports.
The board will provide the expected timeline for completing these workstreams as soon as practicable following finalisation of Octopus Energy Generation’s appointment. Another immediate priority will be to progress the expected construction of the RUMS Project. [We guess that at some point soon the company will have to change its name too]
Terms and timing
Octopus Energy Generation will assume investment and portfolio management responsibilities until 30 April 2024. Octopus Energy Generation will be entitled to a fixed fee of US$1.35m for this period, with an additional performance fee of up to US$0.55m payable entirely at the discretion of the board, depending on Octopus Energy Generation’s performance in executing the immediate priorities noted above.
The future
The board continues to work with its advisers to carry out a wide-ranging review of options for the company’s future. Reflecting shareholders’ strongly expressed support for an Asian-focused impact strategy, this process will include the assessment of proposals for a re-launch of the company which maintains that strategy from a range of experienced managers, including a number who have already approached the company. The board will provide further updates on this process in due course.
TLEI : ThomasLloyd Energy Impact picks Octopus as new manager