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UK Schroders To Buy Majority Stake In Renewables Investor

The move - the latest example of deal-making in overdrive in the asset management industry this year - sees Schroders jumping on two of the sector’s largest trends: greater demand for renewable energy assets and the expansion of the private capital sector.
Schroders is to
acquire a majority shareholding in Greencoat Capital, one of
Europe’s largest renewable infrastructure managers, for £358
million ($473 million).
The London-based wealth and investment management house hopes to
grow its sustainable investment offering through Greencoat, which
valued it at around $477 million.
Greencoat, which has £6.7 billion of AuM at 30 November 2021, has
pioneered large-scale renewable energy infrastructure investing
in listed and private formats, delivering compound AUM growth of
over 48 per cent per annum over the last four years to 31 March
2021, Schroders said in a statement.
Over the past 12 months the renewable investor achieved net new
commitments for private funds and equity raises for listed funds
of £1.6 billion (1 December 2020 to 30 November 2021), Schroders
said, adding that both firms are aiming for global leadership in
the fast-growing investment sector.
Greencoat, which capitalises on two significant growth
opportunities, including the global transition to net zero with
US and European markets for renewable energy assets, is forecast
to grow by more than $1 trillion to 2030, Schroders said. The ESG
investor also utilises accelerating institutional client demand
for environmentally positive products in order to meet their own
sustainability commitments.
As part of Schroders, Greencoat’s growth and its offering to
clients will be significantly enhanced, benefitting from the fund
manager's distribution reach, sustainability capabilities,
management experience and brand. Greencoat. which will become
part of Schroders Capital, Schroders’ private markets division,
will be known as Schroders Greencoat.
Established in 2009, Greencoat focuses on renewable energy
infrastructure investing, including wind, solar, bioenergy and
heat; it operates nearly 200 power generation assets across the
UK, Europe and the US, with an aggregate net generation capacity
of over three gigawatts.
Greencoat’s investor mandates typically comprise permanent or
25-year capital, reflecting the longevity of the assets in which
it invests. It manages the listed renewable infrastructure
investment companies in sterling (Greencoat UK Wind plc) and
euros (Greencoat Renewables plc) and has some of the UK’s leading
pension funds amongst its fast-growing £2.9 billion private
market business.
Its management team is led by its four founders Laurence
Fumagalli, Bertrand Gautier, Stephen Lilley and Richard Nourse
who will continue to run the business day to day, Schroders said.