Glennmont halfway to second fund

The European renewables fund manager has garnered €250m for its latest vehicle, following a €50m commitment by the EIB.

London-based Glennmont Partners has secured a €50 million investment in its Fund II from the European Investment Bank (EIB), the institution’s largest in renewable energy this year.

The commitment brings the total collected by the vehicle to €250 million, or half its €500 million target. Launched in July 2013, the fund held a first close on €200 million last August.

Glennmont Partners is one of Europe’s largest infrastructure investment firms focused on renewables. It spun off from French lender BNP Paribas last January, when it was known as BNP Paribas Clean Energy Partners.

Its maiden vehicle reached a first close in 2010 on €437 million, just shy of its €450 million target. It was known as Fortis Investments Clean Energy Infrastructure Fund at the time, taking its name from the Belgian lender that managed it until end 2008. BNP Paribas bought 75 percent of Fortis in 2009.

In addition to BNP Paribas Investment Partners, investors in the firm’s first fund included the Netherland’s Pensioenfonds Zorg en Welzijn, SPF Beheer bv and Timeos Pensioendiensten.

Glennmont has invested more than €1 billion since 2007, when its current team got together to fund the unit. The 14 projects that make up its portfolio have a combined capacity of 350 megawatts (MW), spanning wind, solar and biomass.

The EIB bills renewables as one of its core priorities, serving its ambition to support the European Union’s stated goal of cutting greenhouse-gas emissions across the continent by 20 percent. The institution’s annual lending in the sector reached €3.3 billion last year, and is topped by equity investments in green energy funds.

The EIB also backs environmental-themed projects through the issuance of Climate Awareness Bonds (CABs), which allow for proceeds to be ring-fenced towards eligible investments. To date the EIB has issued €3.1 billion worth of CABs, with €2.1 billion outstanding.

The institution ranks second for outstanding environmental bonds issuance among multilateral development banks, behind the International Finance Corporation (IFC).