LCM’s SOLO strategy invests in granular, asset-backed secured lending opportunities predominantly across the UK and Europe

Within SOLO’s asset finance activities, SOLO has built a presence in the renewables space by funding more granular assets and service equipment rather than the larger ticket infrastructure assets themselves.

Case Study: Asset Finance – Offshore Wind

What assets are we funding?

The granular assets and service equipment supporting offshore windfarms such as Crew Transfer Vessels (CTVs), Workboats, Generators and Remotely Operated Vehicles (ROVs).

Why does the opportunity exist?

The opportunity exists because, with the growth in offshore wind development, there is strong demand for assets involved in construction and maintenance, but the major banks find the individual deal sizes too small compared to traditional shipping transactions.

How big is the opportunity?

More than 10,000 turbines are expected to be installed in Europe over the next 10 years. The market will require up to 500 new CTVs to cope with the extra demand and to refresh the existing fleet. When combined with the workboats and other marine equipment needed to support offshore wind, plus other assets involved in the related supply and transmission chain such as battery storage sites, this represents a significant and ongoing financing opportunity for LCM SOLO.

Watch the video below to see an example of an offshore wind asset that SOLO is financing in the renewables space: