Macquarie’s GIG targeting $1.5bn for new renewables fund – exclusive

The vehicle is targeting high single-digit returns and will focus investments mostly in Europe.

Macquarie’s Green Investment Group has recently begun raising a new $1.5 billion renewables fund, according to a source familiar with the fundraise.

GIG launched the fund last month and plans to focus investments on onshore and offshore wind and solar assets – under construction and operational – mostly in Western Europe, but also in OECD markets in North America and Asia-Pacific, the source added. The vehicle is targeting 8-9 percent net returns from between 10 and 15 investments and is expected to hold first close later this year.

GIG was founded in 2012 by the UK government as a renewables-focused investment bank. Macquarie Group acquired GIG in 2017 for £2.3 billion ($2.88 billion; €2.56 billion). GIG’s team will run the fund, called Macquarie Green Investment Group Global Renewables Fund II. The group already manages an institutional investor-backed £1.12 billion UK offshore wind vehicle.

A spokesman for Macquarie declined to comment on the fundraise.

In April, Macquarie Infrastructure Real Assets closed its sixth European infrastructure fund on €6 billion. MIRA also closed its latest North America-focused fund this year, raising $5 billion for Macquarie Infrastructure Partners IV. MIP IV invests in core and core-plus infrastructure assets in sectors including utilities and energy, transportation, communications and waste management.