Schroders Greencoat, the renewables and energy transition arm of Schroders Capital (SDR.L), announced on Tuesday, 14 May 2024 that it has secured a £170m commitment from the Environment Agency Pension Fund (EAPF).
Schroders Greencoat Secures £170m EAPF Commitment
This investment will go into Greencoat Renewable Income LP (GRI), the company’s UK private funds market. GRI is a secure income fund and is open to investors until the end of 2024. Based on the Schroders press release, this fund only invests in UK renewable wind, solar and bioenergy infrastructure, and technologies such as heat pumps and green hydrogen electrolysis.
With the EAPF commitment, the GRI fund has a current value of £1.35bn. The EAPF, a founding member of the Brunel Pension Partnership, is a prominent investor in the GRI and other Schroders Greencoat funds.
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Schroders emphasised that these investments support and drive net zero strategies. Tatiana Zervos, a Schroders portfolio manager, commented:
Renewable infrastructure assets are the backbone of the energy transition and, as the largest asset manager of operational wind and solar assets in the UK, Schroders Greencoat is able to offer its clients direct access to these opportunities with long-term reliable, inflation-linked cashflows via a diversified strategy.
The EAPF’s chief pensions officer, Craig Martin, echoed this opinion and indicated that the Brunel, Schroders Greencoat and GRI funds are a “natural fit for EAPF”. He added:
We have a long-standing target of achieving 17% AUM in climate solutions by 2025. This investment will help us achieve this, and support the UK’s levelling up agenda. We look forward to working with the team and our Brunel partner investors to scale UK renewables.
