Scottish Equity Partners has raised a £95 million fund to acquire a portfolio of nine green businesses from energy company Scottish & Southern Energy (SSE).

Scottish Equity Partners has raised a £95 million fund to acquire a portfolio of green businesses from energy company Scottish & Southern Energy (SSE).

The new Environmental Energies Fund (EEF) is set to acquire nine companies from the venture arm of SSE and the fund will be managed by SEP partner Gary Le Sueur.

The £95 million investment in the EEF is led by private equity specialists Lexington Partners. Other investors include UK-based companies Hermes GPE and F&C Private Equity, as well as Swiss-based Partners Group.

SEP has confirmed the EEF fund will have substantial fresh capital available for investment in its portfolio and has plans to add up to five new energy businesses to the fund in 2012.

SSE’s finance director, Gregor Alexander says: ‘SEP has a strong track record in helping innovative companies grow and mature.

‘By moving our cleantech investments into the Environmental Energies Fund we can ensure the companies are able to benefit from the track record and expertise of SEP, and ultimately deliver a better return on our initial investment.’

The fund’s portfolio includes companies which specialise in the likes of solar energy (SolarCentury), electricity grid management solutions (Smarter Grid Solutions) and water recycling (Waterevolution).

SEP managing partner, Calum Paterson says: ‘We are excited by the opportunity that this partnership with SSE brings and pleased to have secured such blue chip investor backing for the fund. 

‘Energy-related technology investments have always been an area of strong interest for us.’

Marshall Parke, managing partner for Lexington Partners says: ‘The clean energy sector is relatively new to the secondary market, and after this deal we expect to see more secondary activity in this space in the future.’