The specialist clean energy private equity firm has invested part of the funding to acquire a 30% stake in Vital Energi, a UK heat infrastructure and energy efficiency business from Scottish Equity Partners (SEP). Corran will work closely with Vital Energi’s management team to help accelerate the delivery of low-carbon heat and energy efficiency solutions across the UK in private and public sector properties.

The investment in Vital Energi comes as new government zoning regulations are introduced requiring new and existing buildings and developments to connect to low-carbon heat networks where available. This is expected to drive significant private investment into the sector.

Corran is also looking to make further selective investments in the renewable heat sector and sustainability-focused growth stage companies across the UK.

Investors in Corran II include US fund Lexington Partners, Strathclyde Pension Fund’s direct impact fund and SSE plc.

Corran has previously invested in Renewco Power, the solar, wind and battery storage company it formed in 2021 with the support of SSE plc. The FTSE 100 clean energy company committed £48m to Corran’s first fund. Renewco Power, based in Glasgow and now with 38 employees, has developed a pipeline of renewable power project opportunities across the UK, Spain, Italy and the US in the three years since it was formed.

As part of its expansion, Corran has appointed Lucy Graham as a partner in the firm and Andy Low as chief operating officer.

Ms 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.

Mr Low comes from Glasgow-headquartered venture capital firm SEP. Corran plans to make additional appointments in the next 12 months to strengthen its investment team further.

Gary Le Sueur, founding partner at Corran Capital, said: “We are very pleased to have once again raised institutional capital to help accelerate the UK’s transition to net zero and I am particularly excited to add Vital Energi, the UK’s leading heat infrastructure and energy efficiency business, to Corran’s portfolio of sector-leading clean energy platforms.

“We are looking forward to helping Vital Energi’s management team to accelerate its growth plans in renewable heat and energy efficiency.

“We are also excited to now have the potential to add other high-quality businesses from the clean energy and sustainability sectors to the Corran portfolio in the years ahead.”

Corran Capital was advised on this transaction by Evercore (financial) and Dickson Minto (legal).