US Solar fund unveils revised investment policy
The amendments to the strategy include allowing investment into «development stage assets» which the board said would allow for «greater diversification» and enable «future accretive growth» opportunities for the fund.
In a circular published today (31 October) the board detailed its proposed changes to the existing investment policy, which, if approved, would come into effect once Amber Infrastructure Group is confirmed as its new investment manager.
Amber is a specialist international infrastructure investment manager and was named the favourite to take over the position back in summer, following the group's failed sale attempt.
The amendments to the strategy include allowing investment into «development stage assets» which the board said would allow for «greater diversification» and enable «future accretive growth» opportunities for the fund.
US Solar Fund selects new investment manager candidate
The company will only target «late-stage development assets» which have a have secured grid connection, planning approvals and appropriate revenue arrangements at a minimum.
According to the board, this updated approach will minimise the company's exposure to risks inherent in earlier stage development projects and compliments the existing strategy looking at more established projects without compromise the fund's «competitive advantage compared to mature asset acquisitions».
The board also proposed removing the requirement for assets to have additional revenue contracts agreed for a minimum ten-year duration in order to «clarify» its approach to «managing merchant revenue exposure» and to «further enhance the diversification» of the holdings.
The managers are also asking shareholders to allow investment into other
Read more on investmentweek.co.uk
