Glennmont Partners has hit its €850m fundraising target for its latest clean energy fund.
The company said it was the largest fund of its kind – focusing exclusively on European green energy – ever raised.
In March, IPE Real Assets reported that the manager had increased its initial €600m target for Glennmont Clean Energy Fund III by more than 41%.
At the time, US pension fund Missouri Local Government Employees Retirement System said it had approved a €65m commitment.
The fund attracted a combination of new investors and those invested in Glennmont’s previous two funds, which raised €437m and €500m, respectively.
Announcing the final close for the fund, Glennmont said investors included UK local authority pension plans for Surrey, Southwark and East Riding, institutions from Japan, the US and Europe, and the European Investment Bank (EIB).
CEO Joost Bergsma said: “Institutional investors globally recognise that the energy transition and climate change is of key relevance to the performance of their portfolio.
“Glennmont’s investment strategy has proven to deliver good performance and predictable returns, and this strong demand from investors underlines the quality of the assets it invests in.”
Andrew McDowell, EIB vice president responsible for renewable energy, said: “Climate change is the biggest environmental crisis of our age. As the EU bank we know that mobilising private capital is key to address this challenge.
“This is the second time we partner with Glennmont in the Clean Energy Fund, which will invest in key technologies necessary to drive the clean energy transition. We are particularly pleased to see the fund surpass its initial target size. This shows the impact public investment like the EIB’s can have.”
More than 70% of Clean Energy Fund III will be invested in projects in the eurozone, althought Glennmont said the UK was an important market.