Corran Capital raises new £80 million fund and acquires stake in Vital Energi
Specialist clean energy private equity firm, Corran Capital, has acquired a 30% stake in Vital Energi. The investment will enable Vital Energi to rapidly scale as an owner and operator of low-carbon heat networks.
Vital is also targeting new markets, moving at pace into adjacent technologies including solar, battery and heat storage, and electric vehicle charging.
The transaction comes as new government zoning regulations are introduced requiring new and existing buildings and developments to connect to low-carbon heat networks where available. It is hoped that this will drive significant private investment into the sector.
With a 30-year track record and 700 employees, Vital Energi is the UK’s market leader in developing and delivering heat networks. Based in Blackburn and with offices in London, Glasgow, Hereford and Burton-on-Trent, the company has connected over 100,000 homes to heat network schemes, including in Glasgow, Manchester, Liverpool, Leeds, Hull and London, working with local authorities and housing associations to tackle fuel poverty.
Corran will work with the Vital Energi management to help deploy further institutional capital to accelerate the delivery of low-carbon generation, infrastructure and energy efficiency solutions across the UK in private and public sector properties.
Backers of the deal include major institutional investors like Strathclyde Pension Fund and Lexington Partners.
Gary Fielding, founder and chairman of Vital Energi, said:
“This investment will enable Vital Energi to play an even greater role in tackling climate change while delivering affordable energy for homeowners and building occupiers. We want to build on our existing client relationships and develop new low carbon infrastructure projects to scale-up the pace of decarbonisation and provide more green jobs for the future.”
Gary Le Sueur from Corran Capital said:
“We are excited to partner with the Vital Energi team to capture the significant growth opportunities in renewable heat and accelerate the broader energy transition. It is a long term journey and will require substantial amounts of capital – both private and public sector – over the next 50 years. Vital Energi is in pole position with its expertise and skills to play a critical role in delivering important renewable heat and energy efficiency solutions for its customers across the UK.”
Corran has appointed Lucy Graham as a partner to support Vital Energi and its investment and expansion plans. Graham was formerly with private equity group Cairngorm Capital and in leverage finance with Virgin Money. She will work with Vital’s management on new opportunities and to deliver the capital required to accelerate the deployment of renewable heat projects. Corran plans to make additional appointments to the Corran team in the next year to strengthen its support to Vital Energi further.
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