Investor interest in tackling the energy crisis has encouraged one sector specialist to increase the target for its debut private fundraise.
Victory Hill Capital Advisors has increased the target from $400 million to $500 million for VH Global Energy Growth I, its first unlisted fund, a source familiar with the firm’s plans told New Private Markets. The fund will be aligned with Article 9 of the SFDR and Victory Hill is due to hold a first close at $250 million in the next few months.
The increased target is due to growing interest from investors to address the global energy crisis by investing to improve the stability and output of energy grids and develop grids’ capabilities for energy storage and transfers, the source said.
Founder and chief executive Anthony Catachanas declined to comment on specific fundraising plans, but speaking generally about investor appetite, he told New Private Markets: “The recent effects of the war in Ukraine on energy prices has really started hitting home for many investors. This has only been exacerbated by blackouts and intermittent supply in a number of energy markets around the world in just the last two years.”
The growth equity fund will take minority stakes in infrastructure technology companies supporting renewables, decentralisation of power generation and grid efficiency. One of the firm’s criteria for portfolio companies is that large, established energy and industrial corporations are shareholders, earlier-stage investors or have purchasing agreements in place. This is proof that the company has growth potential, Catachanas said.
Victory Hill was founded in 2020 by four former directors at Japanese banking giant Mizuho Financial Group. Its first fund, VH Global Sustainable Energy Opportunities, raised £242.5 million ($262 million; €271 million) and was listed on the London Stock Exchange last year.