UK – Major UK pension funds such British Airways, USS and South Yorkshire have invested in a fund specialising in renewable energy.

AIM-quoted environmental investment firm Impax Group said its private equity fund, Impax New Energy Investors LP, has had a €37m second closing – taking commitments to €97m.

“The fund aims to exploit the significant investment opportunities in Europe arising from the legally binding European targets for renewable energy supply,” Impax said.

Impax, assisted by lead placement agent Dresdner Kleinwort Wasserstein will continue to market the fund to new investors – aiming for at least €125m. A third and final closing for the fund is planned for summer 2006.

The fund is supported by Dexia Crédit Local, Impax said, adding: “Other investors in the fund include British Airways Pension Fund, Co-operative Insurance Society, Universities Superannuation Scheme and South Yorkshire Pensions Authority.”

“The investment climate for renewable energy has never been more favourable and large institutional investors are increasingly seeking exposure to it,” said Impax chief executive Ian Simm.

“This expansion of our fund targeting renewable energy projects is a welcome endorsement of Impax and its investment team.”

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