Mirova demonstrates leading edge position with new fundraising in area of energy transition infrastructure
- Mirova begins its fifth fundraising in energy transition infrastructure field
- The team is aiming for a final close above a billion euros
- With this new project, the team aims to expand its investment scope into new technologies for energy transition
Mirova announces the beginning of the fundraising of its 5th fund dedicated to financing energy transition infrastructure. The fund, that is still in its project phase, will be named Mirova Energy Transition 5 Fund1 (MET5). It follows the Mirova Eurofideme 4 fund2, which was invested over the past two years, by continuing to focus on renewable energy and low-carbon mobility sectors. Like Mirova’s previous funds, MET5 will offer great flexibility (majority or minority stake, equity or subordinated debt financing3, with the possibility of short-term bridge financing4), relying on the technical expertise of its team and the solid partnerships established in the industry.
Once created, this new fund will continue to invest in tried and tested technologies (onshore wind farms, solar power, hydroelectricity, biogas) but will also be able to diversify in order to integrate evolving robust technologies, such as offshore wind farms. The team will also pursue the work commenced by Fund 4 in prospecting and investing in the low-carbon mobility sector, notably to support the growth of the electric vehicle sector and the emergence of hydrogen.
The fund will seek innovative projects, which it will support from the development stage across all of these sectors. The capacity invest in greenfield projects that reduce the carbon impact of energy production is one of the distinctive characteristics of Mirova’s team.
Another major development of MET5 is that the team will be able to invest outside of Europe. This geographical diversification will involve up to 10% of the fund’s assets and will target projects located in OECD member countries. The fund could therefore invest in Asia, particularly to extend the partnerships established with European developers in this region, by replicating the models of certain projects already carried out in Europe.
Following the final closing in November 2019 of Mirova Eurofideme 4, then the biggest European fund dedicated to renewable energy infrastructure, the team hopes to raise over 1 billion euros for the MET5 fund. The fund should become operational by the end of the 1st trimester of 2021.
In order to support this growth and invest in this fund, Mirova’s Energy Transition Infrastructure team has expanded to 22.
Renewable energy represents 20% of overall energy consumption in Europe. By 2030, this should rise to 32%. An investment of 1700 billion euros over the next ten years will be necessary to achieve this objective. As a responsible investor, we will continue to provide greater capital to sustainable and resilient infrastructure, and to give institutional investors the opportunity to play their part in the fight against climate change.
With over 20 years’ experience investing in renewable energy infrastructure, the team manages €1.5 billion and has carried out over 70 operations over this period. An expert in the sector, the asset management company launched its first fund of €46m in 2002 alongside ADEME5 in order to initiate the wind sector in France. It then raised two more funds of €94m in 2009 and €350m in 2016 to open itself up to new geographies and technologies. Finally, the 4th fund which raised €859m in 2018 increased its field of activity to low-carbon mobility. Over the years, Mirova has financed over 300 projects representing over 5.7 GW of production capacity installed across Europe.6