Direct Lending fund increases renewable energy exposure

By Daniel Lanyon on Wednesday 30 August 2017

Alternative Lending

More than nine months on from its launch, the RM Secured Direct Lending has deployed nearly £50m of loans.

More than nine months on from its launch, the RM Secured Direct Lending has deployed nearly £50m of loans.

The RM Secured Direct Lending fund has lent £3m in secured loans to refinance the construction of an operational Solar Photovoltaic (PV) park owned and operated by Solarplicity, one of the UK’s leading renewable energy providers.

Launched back in December 2016, the investment trust gives investors access to the direct lending market through a portfolio of loans typically between £1 and £5m.

The fund’s latest commitment allows flexible financing for Solarplicity to recycle capital  and is its fourth investment into UK renewable companies with £12m loaned to renewable energy providers in 2017.

Solarplicity was founded in 2012, and has  installed over 35,000 rooftop solar systems for housing associations to date (representing circa 105 MWp of capacity), over 100 MWp of commercial rooftop solar and over 200 MWp of ground mounted solar systems.

In 2017, it acquired a leading renewable energy supply business and is currently targeting residential, housing association, private sector enterprise and public sector customers with domestic and commercial energy supply offerings.

Pietro Nicholls, principal at RM Capital, says the firm has a long-term interest in opportunities within renewable energy market.

“RM continuez to actively source debt investment opportunities in the renewable energy generation sector. As the UK continues its transition to a low-carbon economy, and market participants adjust to a subsidy free market, RM believe this will present a significant opportunity to generate attractive risk-adjusted returns for investors while financing clean, safe and reliable energy for both consumers and the country,” he said.

Sign up for our newsletters

Your daily 7am download of all things alternative finance and fintech.

Fintech and alternative finance headlines with an exclusive Editor's Note each week. Delivered Monday at midday.

AltFi's new weekly US newsletter breaking down the ins and outs of America's burgeoning fintech sector. Delivered Monday 9am EST/ 6am PST.