Schroders has completed its acquisition of a 75 per cent stake in Greencoat Capital — an investment manager specialising in the renewable infrastructure market.
As a result it will become part of Schroders Capital, the company’s private markets division, and be known as Schroders Greencoat.
The business has delivered AUM growth of over 48 per cent per annum over the past four years and now manages £6.8 billion on behalf of its clients.
The company has a strong platform in Europe and is rapidly expanding in the US. Schroders says the business is well positioned to capture opportunities in a market expected to grow significantly over the near-term.
The recent heightened geopolitical uncertainty, which has resulted in global natural resource supply issues, has increased the urgency and demand for a rapid expansion of renewable power globally, further supporting the strategic importance of this acquisition.
Schroders group chief executive Peter Harrison says:“As governments around the world look to accelerate towards net zero goals, providing capital for the energy transition will become ever more important. In the UK, pension schemes are increasingly focused on their net zero investment obligations following recent regulatory requirements for UK schemes to publish their climate risk disclosures by the end of 2022.
“The completion of the Greencoat Capital transaction expands our offering in an area of high client demand. Institutional investors in the UK and globally are looking for renewable infrastructure investments which provide, long-dated, inflation-linked returns.”
Richard Nourse, who founded Greencoat in 2009, commented: “We are delighted to have found a partner in Schroders that shares our mission to build a global leader in renewables. Combining Greencoat’s leading renewable investment expertise with Schroders’ global distribution network will enable clients to capitalise on the unrivalled opportunity that our sector represents, a trillion dollar investable universe and the chance to support meaningfully the global transition to net zero.”