Nuveen Infrastructure’s Glennmont Partners, a major clean energy infrastructure manager, on Thursday said it has raised 250 million euro through its energy transition enhanced credit II strategy, or ETEC II, based on a Luxembourg alternative fund.
The ETEC II fund is one of the new Reserved Alternative Investment Funds, or Raifs, that were officially registered in Luxembourg this month.
ETEC II, the firm said, will seek to capitalise on growing opportunities to support the green energy and infrastructure transition. The fund is part of a strategy that also aims to boost the deployment of renewable technologies including both onshore and offshore wind as well as solar energy, it said.
“The outlook for energy-related assets remains strong as inflation, primarily caused by rising energy prices, appears to be persistent, which is pivotal in indicating a more positive future for borrowers in the energy sector,” said Scott Lawrence (photo), Partner at Nuveen’s Glennmont Partners.
With headquarters in Chicago, global asset manager Nuveen holds some 1.1 trillion dollars under management. Since 2020 its Luxembourg subsidiary Nuveen Alternatives SARL has registered a total of eight Raifs.
Second fund in energy transition strategy
The new fund is part of Glennmont’s second vintage energy transition credit strategy focused on investment in renewable energy and sustainable infrastructure assets. “Vast growth in investment opportunities is a tailwind for this strategy as the market for energy transition infrastructure surpasses €5.5tn of addressable market size,” the firm said.
Total energy transition financing exceeded 550 billion euro in Western Europe between 2010 and 20. The G20 expects total investment capital across public and private infrastructure will need to reach 5 trillion euro between 2021 and 2030.
The ETEC II fund will draw on the experience of Glennmont’s original 200 million euro energy transition credit fund which has exposure to over 150 renewable energy loans and has consistently delivered value for investors, the firm said.
Green infrastructure investment needs
Since the launch of its ETEC strategy, the primary lending and secondary loan portfolio opportunities are increasingly coming to market, the firm said, due to green infrastructure investment needs, while banks face more restrictive capital requirement constraints and balance sheet recycling needs.
“We are pleased to be offering investors the chance to close the green energy gap whilst also providing diversified yields that are positively benefited by inflation,” said Claudio Vescovo, Fund Manager at Glennmont Partners.
Nuveen Infrastructure is the infrastructure platform that offers access to a globally diversified renewable energy platform through Glennmont Partners, its clean energy affiliate. Nuveen Infrastructure aims to invest in middle market opportunities across multiple strategies and sectors, including clean energy, agribusiness, telecommunications, transportation, and social infrastructure, it said.