Glennmont Partners’s latest energy transition credit fund has made its first investment in the form of a significant risk transfer (SRT) transaction.
Glennmont said the Energy Transition Enhanced Credit II fund, which recently raised an initial €250m, has the SRT ”transaction structured on a €1bn reference portfolio, held by a top-tier European bank”, comprising over 75 loans diversified across five European countries.
The Nuveen-owned infrastructure manager said the portfolio covers a range of sustainable infrastructure sectors including onshore wind, offshore wind, solar and digital infrastructure.
Claudio Vescovo, fund manager of the strategy and managing director at Glennmont Partners from Nuveen Infrastructure, said: “We’re pleased to continue innovating and creating value for our investors. This transaction offers Glennmont’s investors exposure to a highly diversified portfolio and a hedge to inflation with potential upsides in the current interest rate environment.
“This transaction demonstrates Glennmont’s ability to find attractive opportunities and deliver sustainable, enhanced returns for our investors.”
Scott Lawrence, co-founder of Glennmont Partners from Nuveen Infrastructure, said: “Occurring only a few days after the strategy’s first close, this landmark transaction demonstrates Glennmont’s ability to deploy capital quickly and cements the firm’s position as a leader in the sustainable private credit market.
“We believe the strategy will deliver stable, risk-adjusted returns through investments in the sustainable infrastructure space.”
To date, Glennmont has executed credit investments across eight European countries, taking exposure to over 1,000 clean infrastructure projects.
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