Gresham House, the listed alternative asset management firm, is to launch an investment trust to invest in energy storage.
The company is aiming to raise £200m for the launch and has secured £30m of cornerstone investment, including from the management team.
The capital will be deployed into purchasing 70 megawatts of electricity across five sites and storing it via energy storage systems.
The customer for the energy is the national grid.
The trust is targeting a yield of 7 per cent.
Rupert Robinson, managing director of Gresham House Asset Management, said: "We are excited to bring this opportunity to invest in energy storage systems to institutional and high net worth investors.
"What will set the fund apart is the proven expertise of the management team in this highly specialist sector."
Patrick Connolly, head of communications at advice firm Chase De Vere, said: "We are likely to see continued growth in renewable energy infrastructure in the coming years and this could create exciting investment opportunities.
"The target yield of 7 per cent per annum for this investment trust will be very attractive for many investors.
"However, this is a specialist investment area and it isn't possible to generate an annual income of 7 per cent without taking risks.
"While this proposition looks reasonable there are potential risks which include energy storage systems being usurped by new technology, changes in government policy and investment returns being less than expected."
david.thorpe@ft.com
