Exclusive: Mirova targets €1.5bn fundraising

A second core infra vehicle will help broaden its LP base, while the planned Eurofideme-4 will seek to finance the wider energy transition.

French fund manager Mirova is seeking to raise at least €1.5 billion from two new funds, Infrastructure Investor understands.

Mirova Core Infrastructure Fund II has already been registered in Luxembourg and is targeting a close likely to exceed €1 billion. The brownfield fund is a successor to the Mirova Core Infrastructure Fund which raised €700 million in 2015, ahead of its initial €500 million target. Its most recent venture saw it invest alongside PGGM in a portfolio of Spanish PPP assets, with hospitals, broadband and car parks also included in its assets.

A shift in strategy will see Mirova try to attract a broader range of LPs such as institutions based in Asia. The first core fund was predominantly European LPs including pension funds, funds of funds and insurance companies from France, Germany and Netherlands. Mirova is also considering allocating 80 percent of the fund towards investments in Europe, with the remainder reserved for more emerging markets.

The firm is also planning to launch its fourth renewable energy fund next year, with Eurofideme-4 targeting about €500 million in commitments. Its predecessor exceeded its target by €100 million when it closed on €350 million in July last year. About €250 million has been invested so far, with the fund expected to be completed by the beginning of next year.

The fund has financed more than €600 million of wind and solar assets and earlier this week consolidated a previous investment in two wind farms in Croatia with the acquisition of a further 46 percent of the assets.

In addition, Mirova is still mulling the best strategy for Eurofideme-4 – this could involve investments encompassing the broader energy transition and could result in some investments in battery storage, energy efficiency and electric vehicle infrastructure.

Both funds will be targeting similar returns to their predecessors of at least 8 percent.