Encavis Asset Management and German bank BayernLB have launched a €600m fund dedicated to renewable energy.
Encavis Infrastructure Fund 5 is directed at insurance companies, pension funds and retirement funds and will target investments in wind, solar, battery storage and power-to-gas solutions.
The fund has received initial €50m of seed funding from HitecVision-backed OMP Capital.
It has an initial target of €600m but has an option to grow to €1.2bn via equity investment, targeting annual returns of 6-8% over 25 years.
Encavis AM will be responsible for selecting, auditing and operating the wind farms and solar parks, while BayernLB will be responsible for soliciting and supporting investors. The fund will be managed by BayernInvest Luxembourg.
Karsten Mieth, CEO of Encavis Asset Management, said: “Given the ongoing high demand amongst institutional investors for sustainable investment opportunities, particularly in the field of Renewable Energy, we’re confident that this fund will be filled rapidly.”