DIF Capital Partners (DIF) has announced that it has signed an agreement to invest in Pinnacle Power Limited, to accelerate its growth and fund the development and ownership of city-scale district heating networks across the UK.

As part of the deal, DIF will acquire a substantial majority in the firm, while the management team will keep a minority interest. DIF’s investment will be executed through its DIF Infrastructure VII fund. For DIF, Pinnacle Power is an attractive investment proposition that offers a chance to invest in a sustainable energy platform that follows a build-to-core strategy, operating in a rapidly expanding market. Heat networks will play a critical role in delivering affordable, low-carbon heating, and help hit the UK Government’s legally binding carbon targets. This investment offers a clear pathway to achieving decarbonization, through local investment in locally generated, low-carbon heat.

DIF is advised by AFRY, Deloitte, Evolution Infrastructure and Travers Smith. Pinnacle Power and Pinnacle Group are advised by Eversheds Sutherland and Opus Corporate Finance.