Schroders enters renewables and energy transition investment space
City investment giant Schroders Capital said there is such an interest in the renewables and energy transition investment space today that the firm feels confident enough to bring a new dedicated fund to the market.
It expects most of the fund's capital to come from pension funds.
Schroders said it has received regulatory approval from the UK’s Financial Conduct Authority to launch its first investment vehicle solely focused on renewable energy and the energy transition.
The newly approved LTAF is intended to focus on aligned infrastructure investments and will be managed by Schroders Greencoat, the renewable energy unit of Schroders Capital.
"The Schroders Greencoat LTAF is the first LTAF authorised in the UK to have an investment remit solely focused on renewable energy and energy transition-aligned infrastructure," the firm claimed.
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The announcement follows on from the recent launch of the firm's Schroders Capital Climate+ LTAF.
LTAFs are regulated open ended investment vehicles designed to enable a broader range of investors, with longer term horizons, to invest efficiently in illiquid and private assets.
Richard Nourse, Managing Partner, Schroders Greencoat, said that "n March 2013, Schroders Greencoat pioneered the renewable energy infrastructure investment trust market with the launch of Greencoat UK Wind, still the sector leader and now a £3.6bn company on the edge of the FTSE 100."
He added that "today, with increased focus on the DC pension market, we are again pioneering innovative ways to make investment into renewable energy and other energy transition related infrastructure accessible to as wide a range of investors as possible."
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