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ACOFI Management has just launched a fund dedicated to energy infrastructures : Transition Energétique France

In terms of performance, the fund objective is to provide an IRR (internal rate of return) between 8% and 10% with a 8 years investment horizon, taking into account a recurring cash revenue given an 5% annual coupon target.

Article also available in : English EN | français FR

This AIFM asset management company approved by the AMF since 1997, is now focused on managing real asset and direct lending funds. These funds are declined on four major themes: corporate real estate, industry and public sector (out of state) financing and infrastructures.

As part of its infrastructure thematic, ACOFI announced in July the launch of the Transition Energétique France fund, which falls within the new state energy policy, namely an increase on the part of renewable energy in final energy consumption by 32% by 2030.

As indicated, Transition Energétique France is a FPCI (Professional Equity Fund, formerly FCPR with simplified procedure) dedicated to renewable energies. The fund will be invested in solar and wind companies, producing electricity in France. Under the French law n° 2000-108 of the 10th February 2000 regarding the modernization and development of the public electricity service, these companies may indeed benefit from the repurchase obligation by EDF or by any non-nationalized distributors.

Phlippe Garrel, the fund director, targets "between 15 to 20 projects, with a maximum of 20% of the portfolio project that exclusively benefit of repurchase agreements by EDF at low prices,at the closest possible to the conventional market price. "

The goal is to build a homogenous portfolio, in terms of location, energy sources but also regarding legal aspect. About this last point, Philippe Garrel recalls that "the contracts signed today with EDF enjoy a 20 years guarantee that are not contractually liable to be questioned in the future."

The homogeneity of the Energétique Transition France portfolio should "facilitate the block transfer at maturity" added Philippe Garrel.

In terms of performance, the fund objective is to provide an IRR (internal rate of return) between 8% and 10% with a 8 years investment horizon, taking into account a recurring cash revenue given an 5% annual coupon target.

Exclusively dedicated to professional investors, Transition Energétique France does not offer exit possibility prior to maturity for its customers - this fund is considered as an hold to maturity fund, even if a valuation will be conducted on a bi-annual basis.

"The fundraising campaign lasted about one year for the first closing and a second closing is underway, after which the fund will be closed; the final outstanding assets should be around 60 million euros to invest over 250 million euros in assets underlying " says Guillaume de Charry, Deputy General manager, in charge of development for ACOFI.

RF , October 2014

Article also available in : English EN | français FR

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