Glennmont Partners raised EUR850m hard cap target for Clean Energy Fund III

Glennmont Partners has completed the EUR850 million (US$956.56 million) capital raise as final close of its Third Fund investing in clean energy infrastructure projects in Europe. It is the largest amount that has ever been raised for a green energy only fund with a European mandate. The over-achievement of the target for Fund III (originally EUR600 million; US$673.55m) was achieved because of the high level of interest in sustainable themes among investors, and due to the demonstrated success in investment, operations and divestment in the assets in Funds I and II.

Based in London, Glennmont is the world’s largest fund manager focussing exclusively on investment in clean energy infrastructure with assets of over EUR2 billion (US$2.25 billion) currently under management. Glennmont has experienced robust growth over the past 6 years and is planning new products for investors seeking sustainable solutions.

Over 70% of Clean Energy Fund III will be invested in projects in the Eurozone with the UK also being an important market. The capital has been committed by a combination of new and existing investors from Glennmont’s two previous funds. Fund III generated demand globally from Japan, USA, and European markets. Investors also include UK Local Authority Pension Plans such as Surrey Council, Southwark Council, and East Riding Council, as well as the European Investment Bank.

The Third Fund will see investments in offshore wind projects across the EEA for the first time. Otherwise, the Fund adopts a similar investment strategy to its predecessors targeting solar PV, onshore wind, bioenergy and small-scale hydro. The life of the Fund will span ten years and will target to-be-built and recently operational assets with stable, predictable cash yields underpinned by regulated and contracted revenues.

The successful closure of the Third Fund reinforces Glennmont’s reputation in clean energy infrastructure, their expertise for providing attractive risk-adjusted returns to investors and the strong growth opportunities that renewables continue to enjoy as an asset class.