French utility EDF and asset manager Amundi have established a platform to deploy third-party capital in green technologies, the companies announced this week.
The purpose of the newly-created joint asset management business will be to raise funds from institutional and retail investors and finance projects relating to energy transition. The companies have set themselves a fundraising goal of €1.5 billion.
EDF will bring to the table its knowledge and access to investment opportunities within the energy sector as well as its project development, implementation and operational expertise, it said in a statement. Amundi meanwhile will provide its investment structuring skills and its fundraising capabilities.
“This unique partnership between an asset manager and an industrial company seeks to develop a new alternative asset class, decorrelated from the volatility of traditional investment markets, in order in particular to draw long term investments for the benefit of the real economy,” the statement said.
The investment products offered by the joint asset manager will focus on two themes: renewables (including wind power, photovoltaic, and small hydro power plants) and business-to-business energy saving strategies (including electro intensive industries).
The co-owned business is expected to create, in addition to the green vehicle, an investment fund based on high yield real estate. Its remit could be eventually extended to non-energy-related infrastructures, according to the companies.