Schroders Greencoat secures £170 million commitment from Environment Agency Pension Fund

14 May 2024

Schroders Greencoat, the specialist renewables and energy transition infrastructure manager of Schroders Capital, today announces a £170 million commitment from the Environment Agency Pension Fund (EAPF) into its UK flagship private markets fund, Greencoat Renewable Income LP (GRI).

GRI is the largest UK secure income fund of its kind and will be open to investors until the end of the year.

GRI invests exclusively in UK renewable infrastructure assets that generate stable, inflation-protected income streams over a long-term horizon, targeting a diversified portfolio of wind, solar and bioenergy assets. The fund also makes opportunistic allocations to other energy transition infrastructure leveraging technologies such as heat pumps and green hydrogen electrolysis.

To date, it has deployed over £1 billion, gaining exposure to over 165 assets across the UK. Recent investments include stakes in the largest operational solar portfolio to ever be traded in the UK, the largest district heating platform in the UK, the largest portfolio of hydrogen infrastructure in development supported by the UK Government, and a 630MW operating offshore wind farm1.

With the commitment from the EAPF, GRI now stands at £1.35 billion with the final close set for December 2024. The EAPF is one of the founding members of the Brunel Pension Partnership, a long-standing client of Schroders Greencoat and significant investor in GRI and other Schroders Greencoat funds.

This commitment represents another example of Local Government Pension Schemes (LGPS) and, in particular, the EAPF and other like-minded funds in the Brunel Pension Partnership, taking steps to deliver impact-focused investments targeted at UK renewable infrastructure. It is also supportive of the EAPF’s climate targets and net zero strategy, as well as the UK Government’s levelling up ambitions.

Tatiana Zervos, Portfolio Manager, Schroders Greencoat, said:

“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.

“Our track record means we are a trusted partner for influential investors such as the EAPF and we’re delighted to build on our relationship with Brunel which dates back to the fund’s inception in 2019.”

Craig Martin, Chief Pensions Officer, Environment Agency Pension Fund, said:

“Driving the UK transition to a low carbon economy in partnership with Brunel, Schroders Greencoat and the GRI fund was a natural fit for EAPF. 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.”

Richard Fanshawe, Head of Private Markets, Brunel Pension Partnership, said:

“We are very pleased to have facilitated this investment for the Environment Agency Pension Fund to invest into Greencoat Renewable Income alongside its Brunel pool partners Avon, Cornwall, Dorset, Oxfordshire and Wiltshire. This investment achieves multiple Impact, Levelling Up, energy transition, and return ambitions in one fell swoop for the Environment Agency, whose remit is country-wide, not county-specific.”

Source: Schroders
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