Schroders is buying a majority shareholding in the renewable infrastructure manager, Greencoat Capital.
Greencoat Capital has £6.7bn of assets under management and is one of the largest renewable infrastructure managers in Europe. The company has pioneered large-scale renewable energy infrastructure investing in listed and private formats, delivering compound AUM growth of over 48 per cent per annum over the last four years to 31 March 2021.
Schroders will acquire a 75 per cent shareholding in Greencoat Capital, for an initial fee of £358m.
Announcing the deal, Schroders and Greencoat said they had an ambition to be a global leader in this fast-growing investment sector which looks set to benefit from both the global transition to net zero and accelerating institutional client demand for environmentally-positive products to meet sustainability commitments.
Schroders points out that the US and European markets for renewable energy assets are forecast to grow by more than $1 trillion to 2030
Schroders group chief executive Peter Harrison says: “Greencoat is a high growth business, with an outstanding management team, which provides access to a large and fast-growing market in high demand among our clients. Its culture is an excellent fit with ours and Greencoat’s focus aligns very closely to our strategy, continuing our approach of adding capabilities in the most attractive growth segments we can provide to our clients.”
Greencoat founder Richard Nourse adds: “We are all delighted to have found a partner in Schroders who sees the potential of our business and believes in our mission to build a global leader in renewables investing.”
He said the since launch in 2009, the Greencoat team had created a market-leading renewables asset management firm in the UK and Ireland, a strong platform in Europe and an important expansion into the US.
“Combining this team with Schroders’ global distribution network and expertise will enable clients to capitalise on the unequalled opportunity that our sector represents – a trillion dollar investable universe – and the chance to meaningfully support the global transition to net zero.”
