Asset manager Legal & General Investment Management (LGIM) and renewable energy specialist NTR have raised an initial €390m to invest in clean power infrastructure assets in Europe.
The companies said the L&G NTR Clean Power Europe Fund’s first close, which received a €50m co-investment from LGIM’s parent Legal & General (L&G), was backed by a number of European asset managers, Japanese institutional investors and the NatWest Group Retirement Savings Plan.
The fund, categorised as an Article 9 product under the new EU Sustainable Finance Disclosure Regulation, invests in assets across wind, solar and energy storage.
NTR acts as asset manager for the fund with LGIM as fund manager. The pair’s relationship started back in 2015 when L&G became a cornerstone investor in NTR’s first two funds.
In January, the L&G NTR Clean Power Europe Fund announced its first transaction as it acquired three Spanish pre-operational solar projects from global renewable energy developer BayWa re.
Bill Hughes, global head of real assets at LGIM, said: “This marks LGIM’s first infrastructure equity raise and we’re delighted to announce first close of the fund. This milestone is particularly pleasing given the recent private markets backdrop in Europe and Asia, and demonstrates the value of assets that combine stable and robust sources of income with clear sustainability credentials.
“Deploying private capital will be vital to deliver the pipeline of assets we need to reach net zero. This partnership aims to do just that, filling the funding gap and accelerating the construction and operation of clean power infrastructure.”
Rosheen McGuckian, CEO of NTR, said the fund aims to offer exposure to a portfolio of assets across the full lifecycle of clean-power projects in Europe, providing diversification across technologies, regulatory regimes and climate profiles.
McGuckian added: “Our ability to acquire early in the lifecycle and use innovative engineering to optimise assets, combined with LGIM’s stewardship, unlocks additional value for investors.”
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