London-based fund manager Glennmont Partners has raised EUR 850 million in its Clean Energy Fund III which will see investments in European offshore wind projects for the first time.
Over 70% of Clean Energy Fund III will be invested in projects in the Eurozone with the UK also being an important market.
This is the largest amount that has ever been raised for a green energy only fund with a European mandate, Glennmont said.
“Institutional investors globally recognise that the energy transition and climate change is of key relevance to the performance of their portfolio. Glennmont’s investment strategy has proven to deliver good performance and predictable returns, and this strong demand from investors underlines the quality of the assets it invests in,” Glennmont CEO Joost Bergsma said.
Apart from the addition of the offshore wind, the fund adopts a similar investment strategy to its predecessors targeting solar PV, onshore wind, bioenergy and small-scale hydro, the fund manager said. The life of the fund will span ten years and will target to-be-built and recently operational assets with stable, predictable cash yields underpinned by regulated and contracted revenues.
The fund overachieved its target of EUR 600 million due to the high level of interest in sustainable themes among investors, among other things, Glennmont said. Fund III generated demand globally from Japan, USA, and European markets. Investors also include UK Local Authority Pension Plans such as Surrey Council, Southwark Council, and East Riding Council, as well as the European Investment Bank.
Andrew McDowell , EIB Vice President responsible for renewable energy, said: “Climate change is the biggest environmental crisis of our age. As the EU bank we know that mobilising private capital is key to address this challenge. This is the second time we partner with Glennmont in the Clean Energy Fund, which will invest in key technologies necessary to drive the clean energy transition. We are particularly pleased to see the fund surpass its initial target size. This shows the impact public investment like the EIB’s can have.”