In brief: Eurazeo raises €400m for second ‘smart city’ fund

Listed private markets firm Eurazeo has held a final close on its second Smart City Fund, a strategy that invests in climate tech businesses, primarily in Europe.

It has raised €400 million from five state-related entities (EIF, BpiFrance, PFR, FRC and KVIC) and 18 corporations, the firm said this week. The corporate investors include: EDF, TotalEnergies, Stellantis, Hager Group, ZF, RATP, Mainova and SWK AG, Duisport (all from Europe); and from Asia: Banpu, Momentum Venture Capital (past of SMRT), SP Group, Jardine Pacific, IMC Pan Asia, Sansiri and SCG.

The fund’s predecessor was a €137 million vehicle that closed in February 2018. Its initial target for Fund II was €250 million, according to New Private Markets’ database. The fund is classified as Article 8 under EU SFDR.

Closing above target is becoming less common amid a tough market. “The environment is difficult,” said a spokesperson for Eurazeo, “but the fact that the team has demonstrated experience in its sectors and that it has a clear impact component has raised investors’ appetite.”

Eurazeo is also raising a sustainable maritime fund and an energy transition infrastructure fund.