In brief: Azora opens climate solutions PE strategy to LPs

The Article 9 fund has a €250m target and will invest in companies that provide solutions for the decarbonisation of real assets.

Spanish asset manager Azora has formally launched its PE climate solutions fund, and is now looking for commitments from LPs.

Registered under Article 9 of the SFDR, Azora European Climate Solutions Fund has a €250 million target with a €400 million hard-cap. The firm plans to invest across urban solutions, energy solutions and sustainable agriculture. Investment director Fernando Gómez Fortún told New Private Markets that he expects deployment to be “more heavily weighted towards” urban and energy solutions. Investments will be between $10 million and $40 million.

Fortún hopes to reach a first close of approximately €100 million later this year; €50 million has already been allocated to the fund through a combination of Azora’s own capital and an anchor investor. This has been used to make two investments so far, including climate procurement business Abatable. These investments “have been on Azora’s balance sheet and will be effectively moved to the fund”, explained Fortún.

Azora is targeting typical private equity returns for high-growth areas. “We are happy to take scaling risk, and so that’s why we think of ourselves as a more traditional growth equity or private equity investor,” said Fortún.