SSE’s corporate venturing unit has sold nine of its portfolio companies to Scottish Equity Partners for an undisclosed sum today.
SSE will also invest in a £95m green fund, Environmental Energies Fund, set up to take charge of the assets. SSE has also agreed to add up to five of its other portfolio companies to the fund over time. SSE Ventures manages 16 companies and three indirect fund investments, meaning the sale could lead to 87.5% of its direct portfolio being acquired by Scottish Equity Partners (SEP), according to its website.
SEP said it would have "substantial fresh capital available for investment in the portfolio" and that SSE would maintain "a significant interest" in the portfolio.
Gregor Alexander, SSE’s finance director, said: "SEP has a strong track record in helping innovative companies grow and mature. By moving our cleantech investments into the Environmental Energies Fund we can ensure the companies are able to benefit from the track record and expertise of SEP, draw upon the financial resources of the new partners and ultimately deliver a better return on our initial investment. We continue to believe that cleantech companies have an important role to play in developing new technologies and that is why we continue to be involved as a major partner in the EEF."
The companies sold to the SEP fund were Anesco, an energy efficiency company, Aquamarine Power, a wave power company, Cyberhawk Innovations, an aerial inspection company, Geothermal International, a heat pump company, Green Highland Renewables, a hydro-power company, Smarter Grid Solutions, an electricity grid company, SolarCentury, a solar power company, Vital Energi, an energy centre installation company and Waterevolution, a Water recycling company.
SEP raised the funds from Lexington Partners, a private equity secondaries firm, as well as private equity funds of funds Hermes GPE, F&C Private Equity and Partners Group.