Greencoat’s second solar fund hits £262m first close

The vehicle’s first close raised just £33m short of its predecessor’s total amount.

Greencoat Capital already has half of its second solar fund committed to projects as it reaches a first close on £262 million ($353 million; €297 million), according to the London-based renewable energy investor.

Greencoat Solar II has £130 million committed to UK solar projects ranging in size from 5MW to 50MW. The first close comes almost a year after Greencoat finished fundraising for its first solar fund, which closed on £295 million last September. Lee Moscovitch, a partner at the firm, said Greencoat Solar I is “substantially invested”, with a 21-project portfolio worth more than £260 million.

“We’ve seen continued strong interest in Greencoat’s solar offering, and are delighted by both the speed of growth, and the quality of the LPs involved,” Moscovitch said, adding that the LPs committed to Greencoat’s funds are some of the UK’s largest corporate pension schemes.

“We are excited about Greencoat Solar’s prospects. Our pipeline is looking very robust.”

Last month, the firm purchased two projects generating a combined 10MW. Greencoat’s total solar portfolio includes 220MW of generation across 23 projects. Overall, the firm has more than £2 billion under management.

Richard Nourse, managing partner at Greencoat, said: “Renewables are no longer on the periphery of UK pension fund asset allocations, they are becoming mainstream investments for major funds.”