InfraRed Capital Partners (“InfraRed”) is pleased to announce, on behalf of one of its Value-add strategies, an investment in Voltan Energy (“Voltan”), a decentralised energy company based in Finland. Voltan installs and operates ground-source heat pumps in multi-dwelling units and other large buildings, with a growing presence across Finland and ambitions for international expansion. InfraRed has acquired a majority position for an undisclosed amount, with a growth equity allocation of up to €75m being made available.
Founded in 2020, Voltan partners with local housing associations and developers to install their Heat-as-a-Service (“HaaS”) technology, using geothermal heat pumps to provide customers with reliable, clean and cost-effective heating and cooling throughout the year, without the upfront costs of installation.
There is a growing focus on decentralised heating and cooling systems, as part of global efforts to adopt new technologies to help meet net zero targets. In Finland, with its ambition to reach net zero by 2035, the government wants to shift heating and cooling systems towards the use of non-combustion technologies such as heat pumps. Ground-source heat pumps provide a sustainable, competitive alternative to other heating sources such as district heating, which typically rely on combustion technologies.
Voltan currently operates across 10 sites in Finland, with an additional 35 contracted, and with a significant identified pipeline. This market expansion reflects the growing demand for stable and competitive energy pricing and sustainable energy. Centred on domestic expansion initially, Voltan intends to scale operations internationally to address similar needs in other European countries.
In addition to its green credentials and high growth potential, Voltan’s business model exhibits the attractive infrastructure characteristics that InfraRed focuses on, such as long-term contracted revenues linked to inflation. This investment is firmly aligned to InfraRed’s Value-add approach to invest in early stage companies with long-term growth potential, supported by strong underlying fundamentals, and with high-quality management teams.
Stephane Kofman, Head of Value-Add Funds, InfraRed Capital Partners, commented:
“Voltan has successfully established a strong initial footprint and reached a critical step from which our growth capital and expertise can help accelerate its development and ambition. There is a clear need for Voltan’s compelling and differentiated business proposition in Finland and beyond, delivering sustainable heating and cooling to those living and working in urban environments. The management team is highly motivated, with deep expertise in the sector and a clear understanding of the market opportunity. As an active asset manager, we look forward to working closely with them to add value and deliver on Voltan’s potential.”
Miikka Lemmetty, Chief Executive Officer, Voltan Energy, said:
“We are delighted to partner with InfraRed to help us meet the strong demand for competitively priced, clean energy solutions. Their team has significant experience in growing companies, and we look forward to working closely with them on the next phase of our development.”
ENDS
About InfraRed Capital Partners
InfraRed Capital Partners is an international infrastructure asset manager, with more than 160 professionals operating worldwide from offices in London, Madrid, New York, Sydney and Seoul. Over the past 25 years, InfraRed has established itself as a highly successful developer and steward of infrastructure assets that play a vital role in supporting communities. InfraRed manages US$13bn+ of equity capital [1] for investors around the globe, in listed and private funds across both core and value-add strategies.
A long-term sustainability-led mindset is integral to how InfraRed operates as it aims to achieve lasting, positive impacts and deliver on its vision of Creating Better Futures. InfraRed has been a signatory of the Principles of Responsible Investment since 2011 and has achieved the highest possible PRI rating [2] for its infrastructure business for eight consecutive assessments, having secured a 5-star rating for the 2023 period [3]. It is also a member of the Net Zero Asset Manager’s Initiative and is a TCFD supporter.
InfraRed is part of SLC Management, the institutional alternatives and traditional asset management business of Sun Life. InfraRed represents the infrastructure equity arm of SLC Management, which also incorporates BGO, a global real estate investment management adviser, and Crescent Capital, a global alternative credit investment asset manager.
[1] $13bn+ equity under management (USD) – Uses 5-year average FX as at 31st December 2023 at GBP/USD of 1.2881, EUR/USD of 1.1226, EUM is USD 13.433m.
[2] Principles for Responsible Investment (“PRI”) ratings are based on following a set of Principles, including incorporating ESG issues into investment analysis, decision-making processes and ownership policies. More information is available at https://www.unpri.org/about-the-pri
[3] In the 2023 Principles for Responsible Investment (“PRI”) assessment, InfraRed achieved a 5 star rating for the Policy Governance and Strategy and Infrastructure and a 4 star rating for the newly created Confidence Building Measures. Please find InfraRed’s report available for download on our website here: https://www.ircp.com/sustainability/
