In brief: Hg spin-out Asper closes niche Article 9 fund on £220m

Asper IM’s greenfield fund develops low-carbon heating solutions and decarbonises existing heating systems in the UK.

Asper Investment Management, the renewable infrastructure-focused spin-out of technology-focused private equity firm Hg, has closed a specialist greenfield fund on its £220 million hard-cap. The fund channels capital into 1Energy, a funding platform that develops and operates low-carbon district heating systems in urban areas in the UK. 1Energy also “acquires and drives the decarbonisation of existing [urban heating] schemes”, according to a press release from Asper.

Investors in Asper’s fund – which is known as “DHUK” or “Duke” – are “UK and global institutional investors”. Duke is classified as an Article 9 fund, Asper’s press release says.

Two points piqued NPM’s interest in the fund:

  • International investors have appetite for climate and impact strategies focused on just one geography. Investors in Bridges Fund Management, for example, has also attracted international investors for a mostly UK-focused strategy.
  • Specialist impact strategies can hold particular appeal for managers and investors. We frequently see climate-focused funds attracting more capital than generalist impact funds – but Asper’s fund is evidence that further specialisation within the climate space can draw institutional capital. It’s not alone: Vedra Partners and Ardian’s Hy24 are notable examples.