A £3.5m investment into renewable energy specialist Dynamis has been led by Liverpool private capital investor Arete. Tony McDonough reports

Liverpool private capital investor Arete has led a £3.5m investment into a North West business that installs solar panels and air source heat pumps (ASHPs) in homes and businesses.

Warrington-based Dynamis is headed up by founder and chief executive Martin Smith. He has worked in the UK renewable energy market for 10 years. He successfully exited Sunlight Tech after selling the business to Octopus Energy.

With its net zero targets the Government has created a decarbonisation market worth an estimated £200bn over the next 30 years, says Arete, which was established in Liverpool city centre in late 2020 by a team of experienced investment specialists. It is focused on high-tech businesses and those in the zero carbon sector.

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Regulations have already banned the installation of new boilers in new homes from 2025, putting greater pressure on the availability of greener heating options for consumers, presenting a huge app

Dynamis works by providing businesses, homeowners and housing associations with renewable energy systems through its installation of solar and ASHPs. The firm is going through a period of rapid growth and is on course to be a major installer of heat pumps and solar within the next three years.

The investment from Arete will help Dynamis develop and innovate its hardware and software alongside a core installation programme that aims to decarbonise the UK’s housing stock.

Matt Cheetham, partner at Arete, said: “The world is facing one of the most important environmental, social and economically significant challenges of our generation, and this partnership with Dynamis provides Arete with a fantastic opportunity to further invest in the electrification of the UK.

“Over the last 12 months Dynamis has made strong progress in broadening its solutions and strengthening its senior management team and we believe it is now in a place where it can build upon the brilliant work they’ve achieved so far.

“Dynamis’s purpose aligns with our own goals as a business and our investment will support the team in delivering its ambitious plans for growth.”

The partnership with Dynamis is the latest addition to Arete’s growing portfolio, in what has been a successful first year of business. It comes after the launch of Arete Zero Carbon, headed up by Dr Stephen Finnegan. He is the the director of the Zero Carbon Research Institute (ZCRI), and aims to help public and private sector businesses reach net zero carbon by 2050.

Founder Martin Smith leads the Dynamis board, alongside Matt Cheetham from Arete. Also joining the board is Arete’s Mike Fletcher – former chairman of Inspired Energy, where he helped grow the business from £10m to £200m. He is joined by multiple entrepreneur and former head of innovation at Rotork PLC, Gary Jacobson, and former JPMorgan and RBS managing director, Marc Jones.

Martin added: “We waste so much energy as a society – not because we want to, but because there hasn’t been a way that we can regulate our spending and reduce the amount of waste. But that’s what Dynamis aims to offer, smart management of your own home through a range of different energy saving models.”

The transaction was led by Matt Cheetham, Jamie Newall and Mike Bound at Arete. Paul Jefferson and Hannah Serene of Gateley (legal) also advised on the deal.