LONDON–(BUSINESS WIRE)–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.
Based in London, Glennmont is the world’s largest fund manager focussing
exclusively on investment in clean energy infrastructure with assets of
over €2bn currently under management. Glennmont has experienced robust
growth over the past 6 years and is planning new products for investors
seeking sustainable solutions.
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.
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.
The successful closure of the Third Fund reinforces Glennmont’s
reputation in clean energy infrastructure, their expertise for providing
attractive risk-adjusted returns to investors and the strong growth
opportunities that renewables continue to enjoy as an asset class.
Commenting on the final close, 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 €1bn. 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.”
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.”
Connie Hedegaard, European Commissioner for Climate Action (2010 to
2014) said:
“The world is waking up to the need to redirect infrastructure funding
to sustainable themes. As climate change becomes recognised as a global
crisis, it is heartening to see that the trend is for increased flows of
capital to Funds such as Glennmont’s. I am happy to have supported
Glennmont events in the past and I wish them well for the future.”
ENDS
Contacts
Harry Padfield
07896140920
