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Former Energy Minister Chris Skidmore, renowned for authoring the Net Zero Review under the previous government, has embarked on a significant venture with the launch of Desmos Capital Partners. This new private investment bank aims to champion scale-up firms and emerging markets centered around future technologies, net-zero ambitions, and transformative global initiatives.
In his recent Alternative Investment Management Association address, Skidmore unveiled Desmos Capital Partners, emphasizing its mission to back impact-driven companies. The investment vehicle is set to support enterprises looking to secure £5m or more through Series A or B funding rounds and future growth opportunities.
Desmos Capital Partners is distinguished by its innovative approach to financing. The firm plans to employ "creative funding structures and alternative sources of capital," leveraging private family funds and other non-traditional investors to connect with scale-up companies and move beyond the conventional venture capital route.
The firm will initially establish its presence with offices in London and Paris, with subsequent expansions planned for Dubai and Toronto. Skidmore announced that he will be joined by seasoned banking professionals from around the globe, ensuring a robust foundation for Desmos Capital Partners.
The new investment bank is set to focus on a diverse array of green sectors, including clean heat, digital energy management, low-carbon transport and mobility, and green grid technologies. This strategic focus aligns with Skidmore's enduring commitment to advancing a net-zero emissions economy.
Skidmore's political journey has been marked by his resignation from the Conservative Party in protest against the previous government's endorsement of new oil and gas drilling. He subsequently supported Labour in the recent General Election. Reflecting on his new role, Skidmore described Desmos as an extension of his dedication to achieving a net-zero emissions future. His tenure as Energy Minister saw the adoption of a legally binding net-zero target under Theresa May's government, a goal he was instrumental in enacting.
"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 called on ministers to develop a comprehensive road map that would offer investors and private capital markets the assurance that the UK is committed to supporting net-zero businesses.
Since stepping down as a Conservative MP in January, Skidmore has also introduced Better Earth. This consultancy assists governments in formulating climate policy frameworks, and transition plans to accelerate decarbonization and attract investment and climate finance. This sustainability firm, co-chaired by former Prime Minister Boris Johnson, will collaborate with various experts in climate policy, clean energy, and green finance.
The introduction of Desmos Capital coincides with a significant week for green policy. The new government outlined an ambitious legislative agenda in the annual King's Speech to Parliament, including numerous bills aimed at stimulating investment in the green economy.
Energy Security and Net Zero Secretary Ed Miliband also confirmed plans to establish an onshore wind taskforce and publish a new solar roadmap to expedite the government's clean power initiatives.
Despite these promising developments, the Climate Change Committee's latest progress report highlighted the daunting task ahead for the Labour government. The report revealed that only one-third of the emissions reductions required by 2030 are backed by credible policies, underscoring the immense challenge of achieving net-zero targets.
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