A $300 million fund has been created by European asset manager Golding Capital Partners to build a portfolio of solar, wind, and storage assets by the end of 2024.
Golding Energy Transition 2022 will include up to 20% co-investments and around 10 funds.
The emphasis will be on European (60%) and North American (40%) investments in energy-related technologies that “allow and accelerate” decarbonization and the energy transition, including energy storage, solar, wind, and other sources of renewable energy.
Approximately equal amounts of money will be invested in brownfield and greenfield projects.
A first close is anticipated for Golding before the end of 2022, with a target return of 6–7% net internal rate of return (IRR) annually.
“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 megatrends in our society, such as energy transition”, said 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.”
“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 lifecycles.”
In compliance with Article 8+ (“light green plus”) of the Sustainable Finance Disclosure Regulation, Golding Energy Transition 2022 is set up as a Luxembourg-based “Reserved Alternative Investment Fund” (SFDR).
It has a life of 15 years plus one potential extension and is available to institutional investors making investments of at least €5 million.