Corran Capital takes stake in UK heat infrastructure business

Scottish clean energy-focused private equity firm Corran Capital has acquired a 30% stake in UK heat infrastructure company Vital Energi.

The investment is designed to help the company rapidly scale as an owner and operator of low-carbon heat networks. It is also targeting new markets, moving into adjacent technologies, including solar, battery and heat storage, and electric vehicle charging.

With a 30-year track record and 700 employees, Vital Energi is one of the UK’s market leaders 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.

Corran will work with Vital Energi’s management to help deploy further institutional capital to accelerate the delivery of low-carbon generation, infrastructure and energy efficiency solutions across private and public sector properties.

Backers of the deal include institutional investors like Strathclyde Pension Fund and Lexington Partners.

Gary Fielding, founder and chair 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, founding partner at Corran Capital, said: “This is a long term journey and will require substantial amounts of capital – both private and public sector – over the next 50 years, but 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.”