Global investment manager Schroders announced today an agreement to acquire a 75% stake in renewables infrastructure manager Greencoat Capital Holdings Limited for an initial consideration of £358 million. The deal also includes a potential earn out, subject to stretch revenue targets and the continued employment of the senior management team, capped at £120 million. Additionally, options are in place for Schroders to acquire the remaining 25% over time.
Established in 2009, Greencoat is one of Europe’s largest renewable infrastructure managers, with £6.7 billion of AUM. The company focuses on wind, solar, bioenergy, and heat, and operates nearly 200 power generation assets across the UK, Europe, and the US, with an aggregate net generation capacity of over 3 GW.
Peter Harrison, Group Chief Executive of Schroders, said:
“We are pleased to welcome the Greencoat team to Schroders. Greencoat is a market-leading, high growth business, with an outstanding management team, which provides access to a large and fast-growing market in high demand among our clients. Its culture is an excellent fit with ours and Greencoat’s focus aligns very closely to our strategy, continuing our approach of adding capabilities in the most attractive growth segments we can provide to our clients.”
The transaction aligns with Schroder’s strategy to build a comprehensive private assets platform. According to the company, Greencoat operates at the intersection of two growth opportunities, including the US and European market for renewable energy assets, which is anticipated to grow by more than $1 trillion through 2030, and accelerating institutional client demand for environmentally positive products.
Richard Nourse, Founder of Greencoat, said:
“We are all delighted to have found a partner in Schroders who sees the potential of our business and believes deeply in our mission to build a global leader in renewables investing. We are extremely proud of what the brilliant team at Greencoat has together achieved, creating a market-leading renewables asset management firm in the UK and Ireland, a strong platform in Europe and an important expansion into the US.”
Greencoat will become part of Schroders Capital, Schroders’ private markets division, and it will be known as Schroders Greencoat.
“Combining this team with Schroders’ global distribution network and expertise will enable clients to capitalise on the unequalled opportunity that our sector represents – a trillion dollar investable universe – and the chance to meaningfully support the global transition to net zero.”