Aquila Capital is looking to raise €300m for a London-listed fund investing in European renewable energy assets.
The Aquila European Renewables Income fund will invest in a diversified portfolio of onshore wind, solar and hydro renewable energy assets across continental Europe and Ireland.
According to Numis, the portfolio is expected to be diversified by geography (in areas of higher energy resource), technology (wind, solar and hydro) and revenue source (Long-term PPA and subsidy).
As such, Aquila believes that it has the potential to deliver a lower volatility return than single technology UK listed vehicles.
The target NAV total returns for the vehicle are 6%-7.5% per annum, including an initial dividend yield of 1.5% in the six months following IPO, a minimum of 4% in 2020 and 5% in 2021 growing progressively thereafter.
Additionally, Numis notes the leverage is expected to be lower than most UK peers, while the manager has already identified an enhanced pipeline across a combination of operational and greenfield assets.
Aquila Capital has AUM of €8.2bn, including €6bn in real assets. Lead advisor Christine Brockwell has 13 years of renewable energy experience, backed by an experienced (technology specific) investment and asset management team of over 40 individuals.