Global investment manager Schroders announced the completion of its acquisition of a 75% stake in Greencoat Capital, one of the largest renewable infrastructure-focused investment managers in Europe. Initially announced in December, the transaction included an initial consideration of £358 million, with potential earn-outs of up to £120 million.
Established in 2009, Greencoat 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. The company has experienced significant growth, with AUM increasing at a 48% annualized rate over the past four years (to March 2021), reaching £6.8 billion of AUM.
Peter Harrison, Schroders Group Chief Executive, said:
“The completion of the Greencoat Capital transaction expands our offering in an area of high client demand. Institutional investors in the UK and globally are looking for renewable infrastructure investments which provide, long-dated, inflation-linked returns.”
Following the transaction, the business will be known as Schroders Greencoat, and will be integrated into Schroder’s private markets division, Schroders Capital. The company stated that it aims to become a global leader in the fast-growing renewable infrastructure sector. Greencoat launched a US operation in October 2021, with a stated aim to invest $5 billion over the next five years.
Greencoat founder Richard Nourse said:
“We are delighted to have found a partner in Schroders that shares our mission to build a global leader in renewables. Combining Greencoat’s leading renewable investment expertise with Schroders’ global distribution network will enable clients to capitalise on the unrivalled opportunity that our sector represents, a trillion dollar investable universe and the chance to support meaningfully the global transition to net zero.”