SL Capital Partners II Fund
What does the company do?
SL Capital Partners II (“SLCI II”) invests in infrastructure assets in Europe and the UK, with a portfolio of assets including district heating networks in Finland, liquid bulk storage terminals and rolling stock leases in Germany, rolling stock leases and broadband networks in the UK, and a large portfolio of operating solar photovoltaic farms in Poland.
The Q4 2022 valuation of the portfolio was up by 2% on the previous quarter, and up 20% vs Q4 2021. The uplift in the most recent quarter was due to the strong operational performance of Central Europe Renewable Infrastructure (“CERI”), the Polish solar energy portfolio. Annual generation was 9.9% above budget following consistently favourable weather conditions and the high-power price environment. A number of operating expenses such as security and insurance have benefited from the economies of scale at the portfolio, reducing costs and improving the profit margins. In FY 2022, CERI generated 438,496 MWh of CO2 free energy, saving 142,664 tonnes of CO2 emissions. As the portfolio is now fully operational, it has started to distribute funds to SLCI II, which in turn is gradually building up the yield it pays to the Company.