Global infrastructure fund manager IFM Investors will shortly launch an open-ended net-zero infrastructure fund, seeking to raise at least US$3bn (€2.7bn) over the next 12 to 18 months.
The fund will invest in the renewable energy, electrification, low carbon fuel and carbon capture technologies sectors.
Kyle Mangini, IFM Investors’ global head of infrastructure, said: “We are developing this new strategy essentially for investors to invest in decarbonisation.”
The primary area of investment will be in renewable power, with some investment in electrification, Mangini said at a media briefing on the launch of IFM’s Resilience and Transition: Infrastructure Outlook report.
“The new strategy has tremendous investment opportunities,” Mangini said, quoting the International Energy Agency (IEA), which has said that, by 2030, close to US$3-US$4trn will be needed annually for clean energy infrastructure and products.
“If the US$3-US$4trn number is anywhere close to being correct, every institution will have substantially more of this asset class in its portfolio in 10 years,” he said
The net-zero fund will join the manager’s two existing open-ended funds – IFM Global Infrastructure Fund and IFM Australian Infrastructure Fund – as a flagship vehicle.
The IFM Global Infrastructure Fund is already invested in renewable energy assets.
Mangini told IPE Real Assets: “We will carve out this part of the market (renewables) from the global infrastructure fund, but will invest a small portion of its capital into this new strategy so that existing investors continue to get some exposure to net-zero infrastructure assets.”
The vehicle was expected to begin acquiring assets by the end of June, he said.
Like IFM’s global infrastructure fund, the net-zero infrastructure strategy would target assets in OECD markets and those that were in the lower risk spectrum, with core characteristics, he added.
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