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Golding launches first energy transition fund of funds for Euro 300m.

13. Octo­ber 2022

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.

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