Greencoat Capital has launched a new closed-ended private markets fund, Greencoat Renewable Income (GRI), for investments in bioenergy, wind, solar and renewable heat. The firm has secured £277 million (€333 million) of commitments from UK pension investors Brunel and the Trustee of the Superannuation Arrangements of the University of London (SAUL).
GRI offers institutional investors the opportunity to invest, through one vehicle, in a ‘diversified portfolio’ of UK renewable infrastructure assets delivering a solid income with inflation protection.
To date, the fund has allocated around £130 million (€156.4 million) of capital to three investments. These include a share of a 40MW capacity 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 market solar fund.
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.”
“Greencoat has a strong reputation for investing in and managing renewable energy assets,” added investment principal at Brunel Pension Partnership, Gillian de Candole. “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.”
Kevin Wade, CIO at SAUL, said: “This investment will provide SAUL with a diversified renewable infrastructure portfolio generating predictable cashflows to help meet our inflation-linked pension liabilities.
“We know that environmental issues are a key concern for our members and employers so we welcome the opportunity to invest capital in areas of the market that will help the UK to reduce its carbon emissions, importantly, without the need to forgo return.
“We chose to partner with Greencoat in this long-term investment given both their specialist expertise across the range of renewable infrastructure assets and the diversified approach.”