Exclusive: Glennmont seeks to roll over Fund I assets

The renewables manager is in negotiations with a large LP over the terms of a secondary transaction that could fetch up to €1bn.

London-based Glennmont Partners is getting closer to a deal that would see a number of limited partners of its Clean Energy Partners fund subscribe to a continuation vehicle, according to sources with knowledge of the firm.

The fund manager has mandated placement agent Campbell Lutyens to drive a process under which assets from its debut, €437 million vehicle would be rolled over into a new structure. The endeavour is “well advanced”, according to a source, with the process described as having “clear traction”.

It is understood that Campbell Lutyens is in the process of approaching a couple of big institutional investors so as to agree with them on a lead sponsorship for the continuation vehicle. Other, smaller LPs will then be able to buy into the new vehicle based on the pricing agreed with the lead investors, the people said.

Glennmont declined to comment. Campbell Lutyens had not responded to a request for comment at press time.

One lead investor is understood to be in detailed negotiations with Glennmont. In parallel, Campbell Lutyens is already lining up other LPs, sources said, offering them to remain in the fund, stay in the assets via the new continuation vehicle or liquidate their stake and get their money back.

People Infrastructure Investor canvassed on the deal estimate the transaction could be worth between €800 million and €1 billion.

A proportion of LPs are attracted to the continuation vehicle and happy with the process, a person close to the matter said, while others would probably favour an approach that tests the market in a more comprehensive fashion.

The fund is understood to be generating carried interest. It was unclear whether a secondary transaction would lead to a reset of current incentives.

Glennmont closed its debut fund, named BNP Paribas Clean Energy Partners prior to the firm’s spin-out from French lender BNP Paribas, in 2010. Clean Energy Fund Europe II, the firm’s follow-on vehicle, reached a final close on its €500 million hard-cap in December 2014.