Schroders Greencoat, a branch of Schroders Capital specialising in renewable and energy transition infrastructure, has announced the launch of its Semi-Liquid Energy Transition Fund.
The fund is a new addition to Schroders Capital’s innovative range, meeting the increasing client demand for energy transition investment solutions.
The fund is part of Schroders Capital’s growing collection of semi-liquid funds, designed to enhance client access to private asset solutions offering diverse and new return streams, particularly in the energy transition sector.
Characterised by its semi-liquid structure, the fund allows Schroders Greencoat to invest in long-term, illiquid infrastructure assets while offering investors more flexibility and simplicity in operations. The fund will focus on various assets that support the energy transition, aligning with the firm’s experience in the renewable and energy transition infrastructure sectors for over a decade.
Key investment areas for the fund include large-scale wind farms and solar parks, forming the backbone of renewable energy generation. Additionally, the fund will target infrastructure supporting the energy transition, such as clean hydrogen, battery storage, district heating, charging infrastructure, power grids and carbon capture sectors.
The fund’s strategy involves deploying capital across different technologies and project stages worldwide, with a particular emphasis on projects in the US and Europe.
Aiming for risk-adjusted returns, the fund targets a gross return of over 10%, aligning with its categorisation under Article 9 of the SFDR regulations.
Duncan Hale, portfolio manager at Schroders Greencoat, said, “Achieving net zero by 2050 requires significant change and investment into energy infrastructure. This offers a great opportunity for investors to benefit from an innovative fund structure which supports their ability to access energy transition assets that can not only offer attractive returns, but also take advantage of a risk profile which delivers strong diversification characteristics for investors’ portfolios.”
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