UK asset manager Schroders has reached an agreement to buy 75% of renewable investor Greencoat Capital Holdings in a bid to grow its sustainable investment offering .
Schroders has agreed to pay £358 million ($473 million) for the majority stake, it said in a statement, valuing Greencoat at around £477 million.
Greencoat is one of Europe’s largest renewable infrastructure managers with £6.7 billion of assets under management as of 30 November 2021, according to Schroders.
It focuses on renewable energy infrastructure investing including wind, solar, bioenergy and heat and operates nearly 200 power generation assets across the UK, Europe and the United States with an aggregate net generation capacity of over 3 gigawatts.
Greencoat will become part of Schroders’ private markets division — Schroders Capital — and will be known as Schroders Greencoat.
It will help meet institutional client demand for environmentally-positive products in order to meet their own sustainability commitments, Schroders said.
In a statement Schroders said: “Providing private capital for the energy transition required to achieve a net zero future will become increasingly important as governments around the world look to accelerate towards this goal.”
“This is an area where we can support one of the most significant transformations required in economies worldwide to mitigate climate change. In addition, there is strong investor demand for such long-duration assets providing long-term secure income streams.”
“The US and European market for renewable energy assets is forecast to grow by more than $1 trillion to 2030. Schroders is ideally placed to take advantage of this global opportunity with its focus on investment and asset management into all renewable energy types.”