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 focusing exclusively on investment in clean energy infrastructure, with assets of over €2bn currently under management. Glennmont has experienced robust growth over the past six 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, the 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 have partnered 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.”
October 16, 2023