A new clean energy infrastructure fund managed by Glennmont Partners has raised an initial €600m from investors including Missouri Local Government Employees Retirement System (LAGERS) and the University of Leuven pension funds, according to sources.
Nuveen-owned Glennmont has had a first close for Glennmont Fund IV and expects to raise close to €2bn for the fund, more than double the €850m the manager raised for its third fund in June 2019.
According to people familiar with the matter, the capital raised so far for Fund IV has come from pension funds, insurers, banks and wealth managers from the previous strategies, as well as new investors including Nuveen’s parent TIAA and Kansai Electric.
Glennmont’s previous three funds in the series were invested in Europe. IPE Real Assets understands that Fund IV will mainly be invested in Europe but will also look at large scale solar photovoltaics and offshore wind investments in the US and developed East Asian markets, including Japan and South Korea, a move which reflects Glennmont’s recently expanded global remit following its takeover by Nuveen.
A year ago, when Nuveen acquired Glennmont, Nuveen said it would accelerate Glennmont’s growth with new products backed by seed capital from Nuveen and TIAA that would “target investment opportunities in European, US and Asian markets across the equity and credit space”.
In October last year, Ørsted agreed to sell half of the 900MW Borkum Riffgrund 3 wind farm to Glennmont in a €1.2bn deal. According to a source, Glennmont’s acquisition of the 50% stake in the German offshore wind farm project is Fund IV’s first investment.
Glennmont declined a request for comment.
To read the latest edition of the latest IPE Real Assets magazine click here.
