Australia’s green bank, the CEFC, has committed up to A$125m (€75.6m) as a cornerstone investor in a new Growth Opportunities Fund to invest in stabilised renewable assets, including a stake in French renewable developer, Neoen.
The open-ended fund, launched and managed by Australian Ethical, will be seeded with a portfolio of 17 assets, valued at more than A$600m.
The CEFC will transfer five assets, valued at around A$125m, while Australian Ethical will contribute 12, worth more than A$500m to the fund.
Australian Ethical’s Growth Opportunities Fund is structured around five key themes: decarbonisation, digitalisation, urbanisation, circular economy and changing demographics, and incorporates an impact measurement and management framework across the portfolio.
CEFC executive director, Sung Heechung, said: “This investment demonstrates how the CEFC can use its existing assets to help catalyse new market offerings and support the next phase of growth for sustainable finance.
“By backing a new institutional vehicle with CEFC investments, we are helping to establish a scalable platform for climate-focused assets, crowding in capital and expanding the reach of sustainable finance to a broader audience to accelerate Australia’s decarbonisation.
“The CEFC will retain exposure to the underlying transferred investments through its participation in the fund, while helping to crowd in private capital and expand access to climate positive assets for wholesale investors.”
This is the first time that the CEFC and Australian Ethical have recycled assets to support a new investment strategy.
Australian Ethical CIO Ludovic Theau said: “The biggest opportunity to capitalise on and support Australia’s net zero transition is in private markets. We’re leveraging our expertise, capability and networks to partner with some of the best specialists and managers to democratise access to these opportunities for wholesale channels.
“We’re pleased to receive the support of the Australian Government through the partnership with the CEFC on this fund. With the road to net zero before us, this fund allows investors to capitalise on the long-term growth opportunity this presents,” Theau added.
