Meridiam closes energy transition fund on €425m

The 20-year vehicle, launched alongside CNP Assurances, enlisted support from the likes of Allianz, Aviva and the French Reserve Fund.

Meridiam Infrastructure, the French fund manager, has reached a final close on its energy transition fund on €425 million.

Launched in partnership with Paris-based CNP Assurances, the Transition Fund will invest primarily in greenfield projects in the energy efficiency sector, including local energy services (such as heating networks or waste to energy), electricity and gas networks, and renewables. The latter is capped at 25 percent of the fund’s size.

Established in November 2015, the 20-year fund had an original target of €400 million. It will invest in France and the EU.

It is largely backed by domestic investors as well as French subsidiaries of European institutions, with a limited partner base comprising Allianz France, Aviva France, BNP Paribas Cardif, Crédit Industriel et Commercial, the French Reserve Fund, Pro BTP and Société Générale Insurance.

CNP Assurances acted as the fund's cornerstone investor, committing an initial €100 million, plus an extra €50 million that was pending on the vehicle reaching at least €300 million in size.

Thierry Déau, Meridiam’s chief executive, told sister publication Low Carbon Energy Investor in November that this vehicle should be seen as a “club deal amongst insurance companies”.

In April, Meridiam reached a €1.3 billion final close on its flagship Europe Fund III, which has a 25-year duration and invests in early-stage development projects.