Greensphere mulling London listing to raise up to $500m

Green infrastructure investment company Greensphere Capital is considering a listing on the London Stock Exchange in a bid to raise between $300 million and $500 million, a source familiar with the fundraising told sister publication Infrastructure Investor.

The firm said it is examining the prospect of an offering of the entire company as a capital-raising option as it prepares to make new investments in sustainable energy, agriculture and infrastructure assets. While Greensphere declined to disclose the size of the potential listing, it is believed to be aiming for proceeds of up to $500 million.

The group is targeting investments in water, waste, renewable energy, energy transmission and distribution, sustainable agriculture and energy efficiency. These would be primarily based in North America, Scandinavia and Western Europe.

Greensphere stated ahead of its possible IPO that it “aims to revolutionize the private equity and thematic investment fund models.” The strategy will involve delivering returns with zero net costs through mutualizing all fee income and then returning this to its investors. The firm declined to comment on the intended returns.

Greensphere currently acts as a fund manager for the UK’s Green Investment Bank, now known as the Green Investment Group, under Macquarie ownership. The GIB’s £30 million ($39.3 million; €33.7 million) investment in 2012 in a £60 million waste fund managed by Greensphere was the vehicle’s first deployment and the pair joined up again in 2013 and 2014 for anaerobic digestion and biomass plant investments respectively.

Greensphere is led by founder and managing partner Divya Seshamani, a former partner at private equity group TPG. She also had a four-year stint from 2007 in the infrastructure division of Singapore’s GIC. Greensphere’s investment committee also includes Paul Lester, who ended his seven-year chairmanship of John Laing Infrastructure Fund in September. Lester is joined by Ian Nolan, a founder and former chief investment officer of the GIB, as well as Teh Kok Peng, former president of GIC Special Investments.

“By considering placing a company dedicated to sustainability investing into public ownership, Greensphere Capital aims to mutualize access to this important asset class, which has until now, we believe, largely been dominated by specialist private funds,” said Seshamani.