Schroders Greencoat builds on renewable energy demand with launch of semi-liquid energy transition fund

This is the latest addition to Schroders Capital’s expanding suite of semi-liquid funds aimed at boosting our clients’ access to both private assets solutions which offer new and diversifying return streams, as well as energy transition investment solutions.

The evergreen semi-liquid structure will enable Schroders Greencoat to invest in illiquid infrastructure assets with a long-term perspective, while offering greater flexibility and operational simplicity to investors.

Drawing on the extensive expertise of Schroders Greencoat, which spans over a decade in the renewable and energy transition infrastructure sector, the actively managed fund, categorised as Article 9 under SFDR regulations [1], will deploy capital into various assets supporting the energy transition.

Renewable energy generation is the backbone of the energy transition, and the fund will make investments into large scale wind farms and solar parks. It will also target other infrastructure that is supporting the energy transition, such as the clean hydrogen, battery storage, district heating, charging infrastructure, power grids and carbon capture sectors.

The fund will strategically deploy capital across diverse technologies and project stages globally with a specific focus on the US and Europe.

The fund aims to provide risk-adjusted returns with a gross return target greater than 10%.

Duncan Hale, Portfolio Manager at Schroders Greencoat, commented: “The energy transition represents one of the largest and most relevant investment themes impacting clients’ portfolios and, as a result, it’s an exciting and attractive time to be accessing these types of investments. This fund highlights our commitment to expanding access to private assets and generating positive returns for our clients through directly allocating to energy transition infrastructure.

“Achieving net zero by 2050 requires significant change and investment into energy infrastructure. This offers a great opportunity for investors to benefit from an innovative fund structure which supports their ability to access energy transition assets that can not only offer attractive returns, but also take advantage of a risk profile which delivers strong diversification characteristics for investors’ portfolios.