The 10-month search by US Solar (USF ) for a new fund manager is finally close to an end after the board announced Amber Infrastructure Group, manager of the £2.4bn International Public Partnerships (INPP ) investment company, was its preferred candidate.

Amber, which manages a total of £5bn in infrastructure assets and has been responsible for 3GW of US solar projects, including large-scale rooftop installations and battery storage, is in exclusive talks to replace Australia’s New Energy Solar whose five-year term contract to run the $162m USF ends next April.

The board, chaired by Gillian Nott, said the selection of Amber followed ‘a multi-phase competitive process’ that saw ‘multiple responses’ from highly qualified investment managers during a strategic review.

However, it failed to find a buyer for its 42 assets and earlier this month warned that net asset value (NAV) would be reduced as a result. The 9%-yielder’s dividends are at last covered following the $52m (£40m) gain from the sale of its 50% stake in Mount Signal 2 solar park in June.

The company said it would speak to shareholders in the coming weeks and update them as talks with Amber progress.

USF shares dipped 1.6% to 61 cents, extending their one-year decline to 30.7% and leaving them on a discount of over 35% to NAV.

Stifel analyst Iain Scouller said replacing New Energy Solar was ‘taking an inordinate amount of time’.

‘We assume the actual appointment of Amber and the structure of the management contract will depend on what shareholders say they want done with the fund going forward,’ he said, although the fact Amber was well known to UK infrastructure investors was helpful.

Ewan Lovett-Turner, investment companies analyst at Numis Securities, said taking on a fund with a ‘chequered history’ could present Amber with challenges.

‘Shareholders will now be waiting to see if Amber can lay out a more appealing strategy for the existing asset base and we note the consultation with shareholders that will take place over the coming weeks may be key to determining exactly what that is,’ said Lovett-Turner. ‘We expect the investor base may be focused on the hope for realisations/capital returns.’

USF’s largest shareholders are Liontrust with an 11.1% stake, Sarasin at 8.6%, and Newton with 8%, according to Refinitiv data.