1 April 2021
The Swedish pension fund, with 1 trillion SEK AUM, makes its first investment in green energy by entering as a shareholder into Stena Renewable AB. The investment will make Alecta the shared second largest owner, with 20 percent of the company.
Stena Renewable AB has one of the largest operational portfolios of onshore wind in Sweden, producing 315 MW and with close to 600 MW under construction. In 2024, Stena Renewable is projected to have close to 900 MW in production and a continued rapid annual growth. The wind parks are mainly located in the southern parts of Sweden.
The last couple of years, Alecta has invested approximately 10 billion SEK in infrastructure including commitments – a part in the company’s strategy to increase the portfolios share of real assets to 20 percent of the total AUM. The investment in Stena Renewable AB is divided into to 1 billion SEK in direct investment and 600 million SEK in commitments over a 5-year period.
This is the first time Alecta has entered into a direct investment within infrastructure, meaning that they will take a part on the board and be more operative in the company than it has been in previous infrastructure investments.
– We feel really excited about this investment, for several reasons. Stena Renewable AB is a well-reputed firm with a long and successful track record in its field. It is an investment in green energy and thus in the transition to a non-zero economy. Since the wind parks are located in Sweden, the energy will also power the homes and businesses of our customers. We are looking to make more investments like this, nationally as well as internationally, says Johanna Strömsten, Portfolio Manager at Alecta.
So far, Alecta has invested 10 billion SEK in Infrastructure including commitments, something that will increase in the coming years. At the end of 2023, Alecta’s plan is that investments in infrastructure will account for approximately 3 percent of total AUM.
– This is a hallmark investment for us. It carries all the traits we look for – attractive risk-adjusted returns over a long period of time with focus on our commitment to net zero 2050 as a part of the Asset Owner Alliance. We believe it is a good strategy for our customers, with attractive returns and a focus on clean energy, says Hans Sterte, CIO at Alecta.
After the transaction, Stena Renewable will have the following ownership structure: AMF and KLP: 30 percent
Alecta and Stena Adactum: 20 percent
Alecta has more than 1 trillion SEK under management (as of 31 Dec 2020). Alecta has since 2016 successively increased its share of alternative assets within its portfolio, mainly real estate, but also infrastructure and alternative credits. Since 2016, the total share of alternative assets has increased from 7 to 12 percent, with the objective to reach 20 percent of the total assets within a 5-year period.Source: Alecta
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