Across buyouts, infrastructure and private debt there are currently 45 energy transition-focused funds either in market now or planning to come to market in Europe this year, according to research by Paris-headquartered fund placement and advisory firm Reach Capital.
In aggregate, these 45 funds are seeking to raise as much as €26.6 billion, according to a market mapping document seen by New Private Markets.
The lion’s share of this is being raised for infrastructure investment strategies by an array of managers including Aquila Capital, Copenhagen Infrastructure Partners and Meridiam.
“LPs are dedicating a larger portion of their allocations to these thematic funds, which see managers going beyond looking at traditional renewable resources of solar and onshore wind, with increasing interest in hydrogen or battery storage,” said Reach Capital in a statement, in which it described a “challenging 2022-23 fundraising environment”. Reach has worked with general partners such as Tikehau Capital, Cathay Capital and InfraVia.
“Europe is providing the most attractive investment opportunities for LPs in the renewable energy market, who are keen to increase their risk/return profile in the space and gain more exposure to greenfield projects,” said William Barrett, co-founder and managing partner of Reach Capital.