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RGreen plans ‘next generation’ fund following Fund IV close

The energy transition-focused fund manager has deployed roughly 60% of Infragreen IV and plans to launch Fund V, for which it will link carried interest to ESG objectives, next spring.

Paris-based RGreen Invest has closed its latest energy-transition vehicle, Infragreen IV, on €670 million, exceeding its €500 million target and increasing the proportion of international investors committing to the fund to roughly a third, up from 20 percent previously.

About €400 million, or 60 percent, of the fund, which invests in both equity and junior debt, has already been “invested, committed or implemented” across Europe, the firm said in a statement. “We are confident to have at the end of the year/beginning of next year, 75 percent of the total fund invested and committed,” Nicolas Rochon, founder and chief executive of RGreen Invest, told affiliate title Infrastructure Investor.

While ESG has always been “at the heart” of RGreen Invest’s investment strategy – opportunities are analysed in terms of environmental, social and governance risks and investments are monitored throughout their lifecycle – they are “without binding limits or additionality measurement”, Rochon explained.

Infragreen V, which is scheduled to launch in the spring of 2022, and which Rochon described as the firm’s “next-generation fund”, will target high standards in terms of intentionality, additionality and measurement.

“The carried interest will be linked to ESG objectives, aligning interests,” Rochon said. “We clearly hope this fund will be a great tool to fight against climate change and help people to adapt.”

A diverse portfolio

Infragreen IV targets renewable energy assets as well as sub-sectors that include electricity storage, network stabilisation, smart grids, energy efficiency, waste-to-energy and waste treatment.

Some of the investments the firm has made through the just-closed fund include NW Joules, a French company that has developed a “plug & play” container that integrates a storage system, EV fast-charging station, power electronics and an electricity delivery point with a capacity of approximately 1.25MW, according to Rochon.

“NW Joules’ ambition is to deploy the equivalent of 310MW… by 2022,” Rochon added. According to the company’s website, NW Joules has installed 13 such containers, or “JBoxes”, and aims to install 200 by 2022. RGreen’s investment will help the company achieve that, though Rochon did not specify the size or type of investment made through Fund IV.

Another example of Infragreen IV’s strategy is to support the adaptation of agriculture to climate change. To that end, the fund has invested in Sun’Agri, a developer of dynamic agrivoltaic projects.

“Agriculture is the first sector to suffer from climate change,” Rochon said. “Agrivoltaism brings to farmers a disruptive innovation that sustainably improves their production and saves water while allowing the generation of solar energy.”