Glennmont Partners has raised the largest closed-ended fund solely focused on European renewables after exceeding its hard-cap to raise €850 million.
The UK-based fund manager beat its €600 million target for Glennmont Clean Energy Fund Europe III, which was launched in 2017. It had previously raised €500 million for its second fund, which closed in September 2014.
The hard-cap of €700 million was increased mid-way through the fundraising process, Peter Dickson, partner at Glennmont, told Infrastructure Investor. This was partly a response to the level of interest the fund received and to accommodate high ticket sizes potential offshore wind deals might require.
The European Investment Bank signed off on a €100 million commitment to the fund in November 2017. The bank’s investment has been supplemented by LPs from Japan, the US and Europe, including UK local authority pension plans from Surrey, the London Borough of Southwark and the East Riding of Yorkshire.
Glennmont said one of the reasons it was able to generate such commitments was “the high level of interest in sustainable themes among investors”. Pension documents reveal that the Surrey scheme, which agreed to commit £40 million ($50.5 million; €44.8 million) last November, had chosen Glennmont over a BlackRock infrastructure fund partly because it invested exclusively in clean energy.
The third fund is set to continue Glennmont’s strategy of investing in onshore wind, solar, bioenergy, waste and small-scale hydropower. However, it is also targeting offshore wind deals for the first time. More than 70 percent will be invested in the eurozone, though Glennmont maintains the UK “will be an important market”.
The firm has assets under management worth more than €2 billion. Its first fund was raised in 2010 while it was still a unit within BNP Paribas, and before it was spun out from the bank in 2013. Fund I is “predominantly divested”, according to Dickson, while Fund II is partially divested.