Sustainable investment manager Downing LLP has created a new, bespoke investment vehicle for the UK charity, the Human Capability Foundation (HCF), to invest in renewable energy assets.
Over the past 12 years, Downing’s Energy and Infrastructure team has completed more than 175 renewable energy transactions and currently manages a portfolio valued at £785 million. The team will utilise its experience and expertise to acquire and manage a renewable energy portfolio for HCF that will benefit from long-term predictable revenue streams. The investment vehicle can also provide a regular and inflation-linked return that can be used to support HCF’s ongoing charitable purposes.
A Certified B Corp, Downing has worked closely with HCF to tailor the mandate of this new investment vehicle, which will also have an inherent, positive environmental, social and governance (ESG) impact. These assets are expected to include operational core renewables in the UK, which have longstanding track records and, in certain cases, receive government-backed and inflation-linked subsidies.
Downing plans to launch similar investment vehicles for additional charities, foundations and endowments, that can invest on their own or alongside the other UK-registered charities, where trustees are seeking to allocate a proportion of their charity’s funds to renewable energy assets that can deliver stable, attractive financial returns over the long-term and which can also bring broader environmental benefits to society.