Glennmont Partners has successfully raised €850m at the final close of its third fund investing in clean energy infrastructure projects in Europe.
UK-based fund manager Glennmont Partners has successfully raised €850m at the final close of its third fund investing in clean energy infrastructure projects in Europe. It is the largest amount that has ever been raised for a green energy only fund with a European mandate.
The over-achievement of the target for Fund III (originally €600m) was achieved because of the high level of interest in sustainable themes among investors, and due to the demonstrated success in investment, operations and divestment in the assets in Funds I and II.
Over 70% of Clean Energy Fund III will be invested in projects in the Eurozone with the UK also being an important market. The capital has been committed by a combination of new and existing investors from Glennmont’s two previous funds. 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.
Glennmont CEO Joost Bergsma said, “We are delighted to announce the successful closure of our Third Clean Energy Fund which has raised over three-quarters of €1 billion. 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.”
The Third Fund will see investments in offshore wind projects across the EEA for the first time. Otherwise, the Fund adopts a similar investment strategy to its predecessors targeting solar PV, onshore wind, bioenergy and small-scale hydro. 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.
Andrew McDowell, VP Renewable Energy at EIB, 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.”