Investment trust insider on VH Global – James Carthew: a higher risk, higher return renewables fund
I was pleased to see that Downing Renewables & Infrastructure Trust (DORE), which I recently wrote about, made it across the finishing line and its shares are now trading, having raised £122.5m.
We have just heard though that Ecofin US Renewables Trust has not yet hit its $150m minimum size and so its fundraising timetable has been extended. That is going to increase the chance that it runs up against VH Global Sustainable Energy Opportunities, which announced its intention to float on 11 November. We expect to see its prospectus published early next year.
I was surprised that the Ecofin trust is not further advanced given the significant boost to the US renewables sector that comes with a Biden victory. Its investment strategy is focused on US wind and solar and both should now be in vogue.
VH Global would be a bit different to the Ecofin trust and the existing renewable energy trusts, with exposure to asset types and countries that aren’t represented in the sector at present. It has big ambitions, with a target of up to £400m in its initial public offer (IPO).
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