An SFDR article 9 fund, Impact Fund for Transition 2 (SWIFT 2) has a mandate to deploy 60 percent of its capital to biomethane projects, primarily in Europe, with the rest going into hydrogen and renewable heat production. Investment tickets range from €5 million to €50 million.
The fund raised more than three times the amount of SWIFT 1 and was considerably oversubscribed; its original target size was €300 million. SWEN noted a favourable regulatory environment for European renewable energy investments, particularly the “ReFuelEU” initiative and the European Renewable Energy Directive (RED III).
Around 20 investments have been made so far and SWEN plans for the fund to be fully deployed by the end of the year. Similar to its Blue Ocean Fund, half of the carried interest the SWEN team stands to earn will be contingent on achieving targets relating to environmental and social factors.