The UK Innovation Investment Fund is off the ground with the first closing of the £125m Hermes Private Equity Environmental Innovation Fund.
The fund, managed by Hermes Private Equity, will immediately begin investing in low carbon and clean technology funds, and co-investing in companies to provide much-needed venture capital to help these innovative businesses grow. The Hermes Fund will concentrate on investment opportunities aimed at increasing the efficient use of both renewable and nonrenewable resources at all stages of production and consumption.
Since 2000, the UK has emerged as a European front runner in green energy investment, and is well positioned to further develop a sustainable market in this sector. The Hermes Fund will attempt to benefit from this attractive market framework, and expects to commit its capital over the next several years.
Investment has flowed into the UKIIF at extraordinary speed. It’s already one of the largest European funds for investing in high-tech firms. But what’s more important is rapidly channeling that capital into Britain’s green exploding tech sector. After a tough spell, things are looking up for British entrepreneurs and innovators.
According to Energy and Climate Change Minister David Kidney MP:
“Cleaning up our energy supplies and improving energy efficiency will give the UK the opportunity to develop the low carbon industries of the future. This new fund will help the UK to build on existing strengths in the sector and enable British companies to demonstrate and commercialize these technologies.”
In my opinion, the United Kingdom has a wealth of innovators and entrepreneurs seeking to create the businesses of tomorrow – businesses that will make the UK a world leader in low carbon innovation and industry, and help to tackle some of the biggest challenges we face around energy and climate change. This fund will provide substantial investment where it is needed and deliver strong returns for investors.
View a previously written post by Mouli Cohen about green technology