Eiffel Investment Group raises €1.2bn for transition infrastructure debt fund
French asset manager Eiffel Investment Group has announced a successful close of its Energy Transition III fund. The infrastructure debt strategy raised €1.2bn, exceeding its target of €1bn.
Eiffel launched its energy transition fund program back in 2017. The first two funds have invested in over 100 renewable energy developers and 5000 production assets across a wide range of technologies including solar, wind, hydroelectricity, biomass and biogas. The cumulative portfolio has a production capacity of over 15GW2.
“This success confirms the relevance of our offering in response to the unprecedented financing needs for green energy infrastructure in Europe”, said Eiffel Investment Group chairman Fabrice Dumonteil.
Although identities of individual investors were not disclosed, the group said in a statement that over 30 institutional investors have invested in the fund. Eiffel’s existing investor base, through other funds, includes French pension scheme Ircantec and Canada’s La Caisse (formerly CDPQ).
Nearly half of the commitments to the Energy Transition III fund came in the form of reinvestments by existing investors from the first two funds.
Currently, the fund has committed over a third of capital raised. Over the fund’s eight-year lifespan, Eiffel Group expects deployment in the range of €3bn, drawing on the fund’s recycling capacity.
“Our investment capacity is keeping pace with the rapid increase in financing needs in the green energy sector in Europe. It is growing alongside the developers with whom we have established long-standing, trusted relationship”, said Pierre-Antoine Machelon, Eiffel Investment Group’s head of infrastructure.
Eiffel’s latest infrastructure debt fund is set against the backdrop of Europe’s pursuit of energy independence.
The announcement comes just days after the European Commission announced it would permanently cease imports of Russian gas. Commission President Ursula von der Leyen praised the EU’s REPowerEU program in contributing to the decision.
The program includes a push for European clean energy production particularly in solar and wind generation.
“Through the Eiffel Energy Transition III fund, our major investors are making a decisive contribution to financing European energy sovereignty and competitiveness”, commented Dumonteil.
