Glennmont Partners raises €250m for second energy transition credit strategy

30 September 2022

Nuveen Infrastructure’s Glennmont Partners, one of the world’s leading clean energy infrastructure managers, announces the launch of its energy transition enhanced credit II strategy (ETEC II).

The strategy, which has raised €250m, is Glennmont’s second vintage energy transition credit strategy focused on investment in renewable energy and sustainable infrastructure assets. The 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.

It will draw on the experience of Glennmont’s original €200m energy transition credit strategy which has exposure to over 150 renewable energy loans and has consistently delivered value for investors.

Since the launch of ETEC II’s predecessor strategy, the primary lending and secondary loan portfolio opportunities are increasingly coming to market due to green infrastructure investment needs, whilst banks face more restrictive capital requirement constraints and balance sheet recycling needs.

ETEC II will seek to capitalise on growing opportunities to support the green energy and infrastructure transition. The strategy also aims to boost the deployment of renewable technologies including both onshore and offshore wind as well as solar energy.

Scott Lawrence, Partner at Glennmont Partners from Nuveen Infrastructure, said:

“Despite total energy transition financing exceeding €550bn in Western Europe between 2010 and 2020 the G20 expects total investment capital across public and private infrastructure will need to reach €5tn between 2021 and 2030.

“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.”

Claudio Vescovo, Fund Manager at Glennmont Partners from Nuveen Infrastructure, added:

“We are pleased to be offering investors the chance to close the green energy gap whilst also providing diversified yields that are positively benefitted by inflation.”

Source: Glennmont