Golding launches first energy transition fund of funds for Euro 300m.
Munich — Golding Capital Partners, one of Europe’s leading independent asset managers for alternative investments, is expanding its product range with the first specialized energy transition fund of funds. With the “Golding Energy Transition 2022”, Golding wants to make an active contribution to achieving the goals set out in the climate agreements.
The global investment strategy of the new €300 million fund is to build a broadly diversified portfolio by the end of 2024, consisting of approximately 10 target funds and up to 20 percent co-investments. The focus is on European (60 percent) and North American (40 percent) investments in solar and wind energy, energy storage technologies, and other technologies that enable the energy transition and decarbonization. The investments will be split equally between brownfield and greenfield projects. Golding plans a target return of 6.0 to 7.0 percent net IRR p.a. and a first closing already for the end of 2022. Golding has many years of experience with infrastructure assets that contribute to energy supply realignment. With currently 5.7 billion euros of assets under management in the asset class, many energy transition investments are already part of the existing portfolios.
“In times of record high inflation, investors value the stability of infrastructure investments that deliver essential services and benefit from the tailwinds of key societal megatrends such as the energy transition,” says Jeremy Golding (photo/source Golding Capital), founder and managing director of Golding. “This is where we come in, allocating additional capital to key renewable energy projects with experienced target fund managers with excellent track records.”
“Diversification of the globally oriented portfolio is also a particular concern for our new fund. We are therefore planning a total of between 100 and 150 individual transactions, broadly spread across different regions, energy sources, fund managers and asset life cycles. This allows us to add up to 20 percent value-add to the conservative fund profile of Core and Core Plus to take advantage of higher return opportunities. An attractive pipeline of target funds and co-investments is available for rapid portfolio expansion. The common denominator here is, in particular, the UN Sustainable Development Goals on ‘climate action’ and ‘affordable and clean energy’,” explains Dr. Thilo Tecklenburg, Managing Director and Co-Head Infrastructure of Golding.
“Golding Energy Transition 2022” is structured as a Luxembourg “Reserved Alternative Investment Fund” (RAIF) in accordance with the Sustainable Finance Disclosure Regulation (SFDR) under Article 8+ (“light green plus”) and is open to institutional investors with a minimum subscription amount of five million euros. The term is 15 years plus of an extension option.