Exergy Capital and Dalma Capital Management have established the first Sharia-compliant investment fund for global energy transition.
The newly created vehicle will seek to invest in real assets, infrastructure and companies which have developed innovative technologies, products and services throughout the energy value chain, predominantly in Europe.
In a joint statement, the companies said the fund will pursue a private equity style investment strategy generating capital gains for investors and ”focusing on uncrowded niches in the energy and interconnected sectors”.
Erich Becker, a founder and managing partner of Exergy Capital, said: “The current global energy transition is driving an inevitable geopolitical shift and creating unique opportunities not seen in generations.”
Becker said the global energy transition is underway and affecting the entire energy value chain from energy firms, their providers, suppliers and financiers, to end-users.
“The drivers include the need to decarbonise, as well as mounting pressures on and an increasing appetite for electrification and digitisation.
“The next few years of the transition are critical. Investors will need to understand the unique opportunities as they are unlikely to come around again.”
Zachary Cefaratti, the CEO at Dalma Capital, said: “Investing in energy of the future provides a hedge to fossil fuel economies, benefiting investors in the Middle East and beyond who are either directly or indirectly exposed to the conventional energy value chain.
“The ESG Investment thesis is well aligned with Sharia principles – together with Dalma Capital’s Islamic window this will provide the first Sharia and ESG compliant energy transition private equity structure globally.”