Strathclyde gives green light to new impact investments

The Strathclyde Pension Fund approved three new investments totalling £100 million from its direct impact portfolio (DIP) into clean energy and affordable housing in Scotland.

The largest – £60 million – was into the Capital Dynamics Clean Energy UK Fund that will facilitate the acquisition and construction of a portfolio of clean energy projects.

It will focus on wind, solar and battery storage assets in the core markets the United Kingdom (85%+) and the Republic of Ireland.

The fund has been awarded an article 9 (dark green) status.

The fund’s direct investment portfolio (DIP) invested £40 million in the predecessor fund, which it said is performing well.

The second allocation was £20 million into the Corran Environmental Fund II, investing in the clean energy and environmental sectors, targeting assets that will promote decarbonisation and help deliver net zero strategies.

The other £20 million is to the PfP Scottish Mid-Market Rent Fund, providing quality, affordable homes for the midmarket rental sector in Scotland’s main cities.

DIP committed £25 million to the fund in 2019 which has performed well to date, despite the various challenges during the pandemic.