Greencoat Capital has launched a new closed-ended private markets fund, Greencoat Renewable Income (GRI), and has already secured £277m (€333m) of commitments from UK pension investors Brunel and SAUL.
Investments will focus on solar, wind and bioenergy, with selected other green infrastructure opportunities such as renewable heat.
According to Greencoat Capital GRI offers institutional investors the opportunity to invest, through one vehicle, in a “diversified portfolio” of UK renewable infrastructure assets delivering “predictable” sterling cashflows with inflation protection.
The fund has allocated around £130m of capital to three investments to date. These are a share of the Templeborough biomass power plant, a 40MW operating waste wood biomass plant in Rotherham, a share of two of the largest low carbon greenhouses in the UK, currently under construction and a commitment to Greencoat Solar II LP, the UK’s largest private markets solar fund which itself now has investor commitments of over £1bn.
Greencoat Capital has some £5bn under management across a range of private and publicly listed funds with assets in wind, solar, and bioenergy.
GRI will make investment allocations which will be managed by Greencoat’s highly experienced and sector specialised teams, providing cost-efficient access to the depth and breadth of Greencoat’s expertise.
GRI portfolio manager Tatiana Zervos said: “We are delighted with the positive market response to our new fund. It gives institutional investors access to a diversified portfolio of renewable infrastructure, through one vehicle, benefitting from a ‘whole of Greencoat effort’ in an efficient and cost-efficient solution.
Investment principal at Brunel Pension Partnership Gillian de Candole said: “Greencoat has a strong reputation for investing in and managing renewable energy assets.
“This fund is a good fit both with our clients’ return expectations from secured income investments and Brunel’s partnership-wide commitment to act on climate change including extending the range and quality of climate-aware products available to our clients. We look forward to an open and productive relationship with Greencoat for many years to come.”