Golding Capital Partners is expanding its product offering with the launch of its first energy transition fund of funds.
The asset manager said Golding Energy Transition 2022, which seeks to raise €300m, will build a broadly diversified portfolio by the end of 2024, consisting of around 10 funds and up to 20% co-investments.
The focus will be on European (60%) and North American (40%) investments in solar and wind energy, energy-storage technologies, and other technologies that enable and advance decarbonisation and the energy transition. The investments will be split roughly half-and-half between brownfield and greenfield projects.
Golding said Golding Energy Transition 2022 expects to have a first closed before the end of this year and will target a net internal rate of return per annum of 6% to 7%.
Jeremy Golding, founder and managing partner of Golding Capital Partners, said: “At a time of record inflation, investors appreciate the stability of infrastructure investments that provide essential services and benefit from the tailwinds generated by the mega-trends in our society, such as energy transition.
“This is just our starting point, we will be allocating additional capital to vital renewable energy projects with experienced portfolio fund managers with excellent track records.”
Thilo Tecklenburg, managing director and Cc-head of infrastructure at Golding Capital Partners, said: “The diversification of a global portfolio is a clear focus for our new fund. We anticipate that it will consist of between 100 and 150 individual transactions, broadly spread across different regions, energy sources, fund managers and asset life cycles.
“This enables us to blend the conservative fund profile of core and core-plus with up to 20% value-add, in order to exploit higher return opportunities.”
Tecklenburg said there is an attractive pipeline of target funds and co-investments that will make it possible to build the portfolio rapidly.
To read the latest edition of the latest IPE Real Assets magazine click here.
