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Golding Launches First €300 Million Energy Transition Fund of Funds

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Golding Launches First €300 Million Energy Transition Fund of Funds

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  • Golding Energy Transition 2022 to invest in infrastructure for the energy transition – focussing on solar and wind energy, energy storage technologies and decarbonisation
  • Broad diversification across some 10 funds, plus up to 20% co-investments in Europe and North America
  • Target return of 6,0 to 7,0 % net IRR p.a. from 50:50 mix of investments in brownfield and greenfield projects
  • First closing planned in 2022, portfolio construction complete by year-end 2024

Golding Capital Partners, one of Europe’s leading independent asset managers for alternative investments, is expanding its product range with the first specialised fund of funds for the energy transition. With Golding Energy Transition 2022 Golding intends to make an active contribution to achieving the goals defined by climate agreements. The global investment strategy of the new €300 million fund is to build a broadly diversified portfolio by the end of 2024, which will consist of around 10 funds and up to 20 per cent co-investments. The focus will be on European (60 per cent ) and North American (40 per cent ) investments in solar and wind energy, energy storage technologies, and other technologies that enable and advance decarbonisation and the energy transition. The investments will be split roughly half-and-half between brownfield and greenfield projects. Golding is planning a target return of 6,0 to 7,0 per cent net IRR p.a. and a first closing before the end of 2022. Golding has many years of experience with infrastructure assets that contribute to this realignment of the energy supply. With €5.7 billion under management in the asset class, the existing portfolio already includes many investments in the energy transition.

“At a time of record inflation, investors appreciate the stability of infrastructure investments that provide essential services and benefit from the tailwinds generated by the mega-trends in our society, such as energy transition”, says Jeremy Golding, Founder and Managing Partner of Golding. “This is just our starting point, we will be allocating additional capital to vital renewable energy projects with experienced portfolio fund managers with excellent track records.”

See related article: Junction Growth Investors Raises €75 Million in First Close of Energy Fund

“The diversification of a global portfolio is a clear focus for our new fund. We anticipate that it will consist of between 100 and 150 individual transactions, broadly spread across different regions, energy sources, fund managers and asset life-cycles. This enables us to blend the conservative fund profile of Core and Core Plus with up to 20 per cent Value Add, in order to exploit higher return opportunities. There is an attractive pipeline of target funds and co-investments that will make it possible to build the portfolio rapidly. Common denominators are in particular the UN sustainable development goals, ‘Climate action’ and ‘Affordable and clean energy’”, explains Dr Thilo Tecklenburg, Managing Director and Co-Head of Infrastructure at Golding.

Golding Energy Transition 2022 is structured as a Luxembourg-based “Reserved Alternative Investment Fund” (RAIF) in accordance with Article 8+ (“light green plus”) of the Sustainable Finance Disclosure Regulation (SFDR), and is open to institutional investors committing a minimum of €5 million. It has a life of 15 years plus one optional extension.

Source: Golding Capital Partners

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