Information on the Target

Zest, a certified B Corporation, is a leading player in the electric vehicle (EV) infrastructure sector. The company specializes in developing charging solutions aimed at enhancing the accessibility and convenience of EV charging. Recently, Zest has demonstrated notable commercial momentum, successfully converting various strategic contracts into large-scale deployments.

Among its significant projects are the installation of rapid charging stations at 75 sites as part of Transport for London’s Electric Vehicle Infrastructure Delivery (EVID) program, as well as the UK's largest concentration of EV charging infrastructure in collaboration with Hackney Council.

Industry Overview in the UK

The UK has seen a remarkable increase in the adoption of fully electric vehicles, with registrations approaching one million by the end of 2022—nearly a third of which occurred in 2023 alone. Complementing this trend is the growth in public charging points, which now exceeds 53,000. Despite this progress, there remains a significant gap to meet the government’s ambitious target of 300,000 public charge points by 2030.

The UK's EV infrastructure industry is undergoing transformation, fueled by investment from both public and private sectors. The Charging Infrastructure Investment Fund (CIIF), managed by Zouk Capital, plays a crucial role in this landscape, focusing on scaling public EV charging networks while promoting sustainability and reducing carbon emissions in transportation.

The CIIF, a £420 million public-private initiative backed by HM Treasury and private sustainable investors, aims to accelerate the deployment of charging infrastructure across the UK. This effort is vital as the demand for EVs grows, and adequate charging facilities become critical for widespread adoption.

Increased commercial engagements in the EV sector point towards a future where electric vehicles will dominate the transportation landscape, requiring a robust and effective charging infrastructure to support their growth. Stakeholders, including local governments and private corporations, are keen to partner with established industry leaders like Zest to facilitate this transition.

The Rationale Behind the Deal

The decision by Zouk Capital to elevate its investment in Zest to £105 million stems from the latter's increasing commercial traction and rapid deployment capabilities. Zest’s alignment with CIIF’s objectives, particularly in delivering strategic EV infrastructure projects, makes it a fitting candidate for further financial support.

This additional funding underscores the confidence in Zest’s operational model, its commitment to social and environmental responsibility, and its capacity to address the growing demand for EV charging solutions across the UK.

Information About the Investor

Zouk Capital is a prominent investment firm that specializes in sustainable infrastructure and climate technology. As the manager of the CIIF, Zouk is committed to fostering the growth of a sustainable economy by investing in projects that not only yield financial returns but also facilitate positive social and environmental impacts.

The CIIF reflects Zouk's vision of boosting public EV charging networks in the UK, contributing to the reduction of greenhouse gases and air pollution. Backed by HM Treasury and sustainable private investors, the fund exemplifies a collaborative approach to addressing the pressing environmental challenges associated with transportation.

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This investment by Zouk Capital in Zest is viewed as a strategic move to enhance the UK’s EV infrastructure at a critical time of growing demand. Zest's proven ability to convert contracts into extensive deployments positions it favorably in the fast-evolving EV sector.

Furthermore, Zest’s commitment to high standards of social responsibility and climate sustainability aligns well with contemporary investment trends that prioritize environmental considerations. This indicates that Zest is likely to continue attracting interest from like-minded investors.

Overall, the increase in investment from Zouk Capital may be considered a sound decision, reinforcing the viability of Zest as a leader in the EV charging space while supporting the broader goal of transitioning to electric vehicles. The continued growth in EV adoption and infrastructure development provides a robust foundation for potential returns on investment.

As the market for EVs evolves, companies like Zest, backed by investors dedicated to sustainability, are well-positioned not just for growth but also for long-term resilience in contributing to the fight against climate change.

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