Former Energy Minister and author of the previous government’s Net Zero Review, Chris Skidmore, has launched a new private investment bank Desmos Capital Partners in a bid to support scale-up firms and new markets focused on future technologies, net zero, and “transforming the world”.
Unveiling the new venture in a speech at the Alternative Investment Management Association earlier this week, Skidmore said the investment vehicle would focus on impact-driven companies seeking to raise capital of £5m or more via Series A or B funding rounds or future growth rounds.
According to reports, Desmos will seek “creative funding structures and alternative sources of capital” such as private family funds and match scale-ups with investors rather than simply approaching venture capital funds.
The new firm will initially establish offices in London and Paris before expanding to Dubai and Toronto, with Skidmore revealing he is set to be joined by “highly experienced banking experts from across the world”.
Desmos will also aim to support burgeoning businesses in range of green sectors, including clean heat, digital energy management, low-carbon transport and mobility, and green grid technologies.
The former Conservative MP, who resigned in protest at the previous government’s support for new oil and gas drilling and backed Labour at the recent General Election, described Desmos as part of a “personal commitment” to support the delivery of a net zero emissions economy. Skidmore was Energy Minister when Theresa May’s government adopted a legally binding net zero target and he was the Minister who signed the goal into law.
“As I travelled the country meeting with businesses and organisations, it was clear that for companies seeking to innovate and scale up the solutions needed to decarbonise or reduce emissions, access to private capital was their major issue,” he said. “For those companies that know they can provide the solutions to both help tackle the climate crisis, or meet the changing demands of our ever-changing world, they cannot wait for yet another framework through which to be judged: they need support today.
“I can announce today that I am helping to establish a new private boutique investment bank, Desmos Capital Partners, that intends to focus on providing the support needed to companies seeking to scale and raise capital”
In addition to announcing the launch of Desmos, Skidmore urged ministers to create a road map to provide investors and private capital markets with greater confidence the UK is open for net zero businesses.
Since quitting as a Conservative MP in January, Skidmore has also launched Better Earth, a consultancy to help governments deliver the climate policy frameworks and transition plans needed to accelerate decarbonisation efforts and attract inward investment and climate finance. Co-chaired by former Prime Minister Boris Johnson, the sustainability firm is to work with a range experts in climate policy, clean energy, and green finance.
Skidmore’s launch of Desmos Capital comes amid a landmark week for green policy after the new government confirmed plans for a wide-ranging legislative agenda in the annual King’s Speech to Parliament, which includes a raft of new bills designed to boost investment in the green economy.
Energy Security and Net Zero Secretary Ed Miliband also this week confirmed plans to set up an onshore wind taskforce and publish a new solar roadmap in a bid to accelerate the government’s pursuit of its clean power goals.
However, in a stark reminder of the scale of the net zero challenge facing the Labour government, the Climate Change Committee’s latest progress report confirmed only a third of required emissions reductions for 2030 are currently covered by credible policies.
Keep up to date with all the latest green business news by signing up to the free Daily and Weekly BusinessGreen Newsletters.