Cardiff Capital Region Equity Fund Backs Energy Innovation Firm Sero
The Cardiff Capital Region's £50 million equity fund has made a strategic investment in the growth plans of energy innovation venture Sero. This latest move underscores the region's commitment to supporting businesses that drive both economic value and environmental sustainability.
Scaling Up Energy Efficiency Solutions
Sero, a Cardiff-based firm, specializes in providing energy services and retrofit solutions for residential properties. The company currently works with local councils and housing associations to improve the energy efficiency of up to 2,500 homes. With this new investment, Sero is poised to expand its impact significantly, targeting a contracted pipeline of an additional 10,000 homes.
The firm operates across South Wales, the south west, southern England, and London, blending retrofit expertise with proprietary technology. This technology spans from strategic support to ongoing energy management services, helping to reduce bills and carbon emissions while enhancing home comfort.
Investment Details and Regional Impact
The investment comes from the Innovation Investment Capital fund, managed by Capricorn Fund Managers on behalf of the Cardiff Capital Region. While the exact value of the investment in Sero has not been disclosed, it represents part of a broader strategy where approximately half of the £50 million fund has already been deployed across regional firms like Mazuma, Space Forge, and Transcend Packaging. A sixth co-investment deal is expected to be announced shortly.
This funding round builds on a previous £6 million investment in Sero from Cardiff-based bank Hodge and Legal & General Capital in 2023, highlighting growing confidence in the company's vision and technology.
Leadership Perspectives on the Partnership
James Williams, Chief Executive of Sero, emphasized the alignment between the company and the Cardiff Capital Region. "IIC's investment is a vote of confidence in Sero's vision and technology," he said. "Both share the aim of using innovative solutions to drive down bills, cut carbon emissions, and deliver better, more comfortable homes for residents. With this support, we will accelerate deployment of our energy-efficiency solutions, deepen partnerships with housing providers, and unlock new pathways for sustainable growth."
Kellie Beirne, Chief Executive of the Cardiff Capital Region, noted the strategic importance of backing local innovators. "Supporting Sero reflects strategic backing of our local companies that leverage innovation to deliver strong commercial and societal outcomes," she explained. "Sero's growth trajectory, rooted in technology and its contribution to improving the energy efficiency of housing stock, makes it a compelling story. We are proud to back a business that not only drives economic value but also supports meaningful climate action and community benefit in our region."
Investment Philosophy and Advisory Support
Lynda Stoelker, Chief Operating Officer at Capricorn Fund Managers and Chair of the IIC investment committee, highlighted how Sero fits within the fund's investment philosophy. "Sero combines sustainable technology, scalable growth potential, and a mission-centric business model," she said. "We see this investment as a strong strategic and financial fit that contributes to regional development and decarbonisation objectives."
Professional advisory firm PwC provides investment research and sourcing for the fund. Rob Asplin, Partner at PwC, commented, "Sero was recognised as an investment opportunity due to its blend of technology-enabled solutions, strong leadership, and robust market opportunity within the energy efficiency and retrofit sector. These qualities align with the fund's investment criteria and its mandate to help scale regional innovators with the potential to deliver measurable impact."
Legal advice for the deal was provided by Hugh James. Gerallt Jones, Partner and Head of Corporate/Commercial at the Cardiff-headquartered firm, added, "The IIC investment in Sero highlights the strong investor confidence in innovative businesses that are delivering scalable, sustainable solutions in the Cardiff Capital Region. IIC has become a key player in the investment landscape, and we are delighted to have worked with the team on another significant investment in a business contributing to the economic growth of the region."
This investment marks a significant step forward for Sero as it expands its operations and continues to drive innovation in the energy efficiency sector, benefiting both the regional economy and environmental sustainability efforts.
