National law firm TLT has advised Dalmore Capital on its acquisition of a portfolio of nine ‘run of river’ hydropower sites located in Scotland from Triple Point Energy Transition plc for £44.1m.

Dalmore Capital is an independent fund management company that invests in long-term infrastructure assets on behalf of institutional investors. 

The portfolio can provide base load renewable generation and balance other forms of intermittent supply, which is key to delivering a net-zero energy mix. It also represents a high-yield, low-risk investment and is highly cash generative, with revenues backed by long term Feed-in-Tariff subsidies benefiting from Retail Price Index (RPI) indexation. The portfolio offers an attractive risk adjusted return, high inflation correlation and strong downside protection.

TLT acted as legal advisor to the buyer across multiple areas of expertise. The team was led by corporate future energy partner Kay Hobbs, with support from associate Joshua Swain and trainee Amina Harvey. The deal also required cross-practice support from the grid, property, planning, banking and regulatory teams.

Kay Hobbs, corporate future energy partner said: “We are delighted to have advised Dalmore on the acquisition of this operational hydro portfolio. Operational hydro portfolios are not commonplace in the M&A market but offer an excellent opportunity to diversify and complement a portfolio that consists of other more mainstream technologies.

“Having a full-scale Scottish real estate team within our future energy team helped to deliver this transaction seamlessly under one roof at pace. This, along with our experience in the clean energy sector and Dalmore’s commercial, pragmatic approach, made for a winning combination.”

Alistair Ray, CIO of Dalmore Capital, said: “We are pleased to have acquired this hydro portfolio, offering our investors access to high-yielding and low-risk renewable generation assets that play an important part in the UK’s transition to net zero. It further diversifies our portfolio and supports our investment focus on long-term, low volatility infrastructure projects that deliver socio-economic and environmental benefits.”

Date published

24 January 2025

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