Energy firm SSE and a consortium of financial investors led by Lexington Partners are supporting the Environmental Capital Fund (ECF).
Its anchor investment will be SSE Pipelines, which SEP acquired from SSE.
SEP said the balance of the fund would be ploughed into a portfolio of UK clean energy infrastructure projects like hydro power, energy efficiency, heat pumps and district heating schemes.
The new fund complements SEP’s Environmental Energies Fund (EEF), which was launched in 2011 to buy a portfolio of cleantech investments from SSE.
SEP managing partner Calum Paterson said: "This is another significant fund for us, which helps to broaden our reach without undermining our core focus. We are particularly pleased to extend our successful partnerships with SSE and Lexington Partners.
"The market opportunity for energy infrastructure finance is very attractive, and the new fund fits well with our existing activities."
SSE will initially invest £13.8m for a significant minority stake in the ECF.
SSE finance director Gregor Alexander said: "We are delighted to have the opportunity to complete the disposal and, at the same time, participate in SEP’s new fund targeted at small-scale clean energy projects throughout the UK.
"This transaction will ensure resources are fully focused on what is important and relevant to SSE plc’s core purpose of providing the energy people need in a reliable and sustainable way whilst supporting future investment in clean energy."
