UK fund manager Shroders is aiming to buy a 75% stake in renewables infrastructure manager, Greencoat Capital in a deal estimated to be worth £360m ($478.5m).
Greencoat, a specialist manager dedicated to the renewable energy infrastructure sector, has £6bn invested in the bioenergy, solar, heat and wind sectors.
A Shroders spokesperson confirmed the company is “ advanced talks with Greencoat Capital, a leading European renewables infrastructure manager, about taking a significant stake in the business.”
Shoring up ESG credentials
They further added: “Schroders continues to evaluate potential acquisition opportunities in line with its strategy to build a comprehensive private assets platform and enhance its leadership position in sustainability.”
In Shroders Outlook 2022: Sustainable investment report, the company earmarked ESG priorities to include climate change, biodiversity and natural resource constraints. In the coming year, there would be increasing regulatory scrutiny hitting all parts of the value chain around the world.
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Richard Nourse, who founded Greencoat in 2009 said the company’s goal was to build a global leader in renewables investing, creating “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.”
Increasing interest in renewables
The renewables infrastructure manager has forecast the renewable energy market in the US and Europe to rise by more than $1trn by the end of 2030.
The Financial Conduct Authority has backed moves for asset managers to rate their funds on sustainability. “ESG matters are high on the regulatory agenda. If the financial sector is going to help support the transition to a more sustainable future, market participants and financial services firms need high quality information, a well-functioning ecosystem and clear standards.”