Glennmont Partners has launched an energy transition enhanced credit II strategy (ETEC II), which has raised €250m.
It is Glennmont’s second vintage energy transition credit strategy focused on investment in renewable energy and sustainable infrastructure assets.
ETEC II will draw on the experience of Glennmont’s original €200m energy transition credit strategy which has exposure to over 150 renewable energy loans and has “consistently delivered value” for investors.
Since the launch of ETEC II’s predecessor strategy, the primary lending and secondary loan portfolio opportunities are increasingly coming to market due to green infrastructure investment needs, whilst banks face more restrictive capital requirement constraints and balance sheet recycling needs.
ETEC II will seek to capitalise on growing opportunities to support the green energy and infrastructure transition.
The strategy also aims to boost the deployment of renewable technologies including both onshore and offshore wind as well as solar energy.
Scott Lawrence, Partner at Glennmont Partners from Nuveen Infrastructure, said: “Despite total energy transition financing exceeding €550bn in Western Europe between 2010 and 2020,2 the G20 expects total investment capital across public and private infrastructure will need to reach €5tn between 2021 and 2030.
“The outlook for energy-related assets remains strong as inflation, primarily caused by rising energy prices, appears to be persistent, which is pivotal in indicating a more positive future for borrowers in the energy sector.”