UK-based investment firm Impax Asset Management has reached a €149 million first close on its third renewable energy fund.
The vehicle, which was launched earlier this year, has a target of €500 million and is seeking to invest in greenfield wind, solar and hydro projects in “selected” European countries.
Impax said it is already conducting due diligence on the fund’s first investments and expects to close Impax New Energy Investors III in late 2017 or early 2018. The fund received a €4 million commitment from Impax itself, while the European Investment Bank last year approved a €50 million investment.
Impax’s first renewables fund closed in August 2006 on €125 million, and its successor followed suit with €330 million five years later. Over the past year the firm has sold five assets or portfolios from the second fund, representing 70 percent of the platform. Assets exited include wind farms in Finland and Ireland, sold to Allianz Capital Partners and Greystone Infrastructure Fund respectively.
Looking ahead, Impax bemoaned the colder views of President-elect Donald Trump towards renewable energy as “disappointing” but said it was encouraged by his commitments to the development of US infrastructure.
Regarding Britain’s decision to leave the EU, the firm acknowledged the vote as a contributor to market volatility but noted that 75 percent of its assets are based outside the UK.