Schroders has acquired 75% of renewable infrastructure manager Greencoat Capital, the two firms said Tuesday in a joint news release.
London-based Schroders agreed to pay £358 million ($474.8 million) for the stake. It also has the option of acquiring the additional 25% later.
The deal is subject to U.K. regulatory approval and is expected to close in the first half of 2022, according to the release.
Greencoat will become part of Schroders Capital, the firm's private markets division and be known as Schroders Greencoat. As of Sept. 30, Schroders Capital managed £16.8 billion in real estate assets.
Greencoat's four founders, Laurence Fumagalli, Bertrand Gautier, Stephen Lilley and Richard Nourse, will continue to serve as the management team.
According to the release, Greencoat is one of Europe's largest renewable infrastructure managers, with £6.7 billion in assets under management as of Nov. 30, through private and listed large-scale renewable energy infrastructure investments.
Over the last 12 months, Greencoat raised £1.6 billion in new commitments for private funds and equity raises for listed funds.
Established in 2009, Greencoat focuses on renewable energy infrastructure including wind, solar, bioenergy and heat, and operates nearly 200 power-generation assets across the U.K., Europe and the U.S., with an aggregate net generation capacity of over 3 gigawatts. Its investor mandates are typically for 25 years or longer.
"We are confident that we will be able to leverage the strengths of both firms while preserving Greencoat's differentiated position in the market," Peter Harrison, Schroders group CEO, said in the release.