Schroders Capital acquired a 75% stake in European renewable infrastructure manager Greencoat Capital, Schroders said Monday in a news release.
Greencoat will become part of Schroders Capital, which has $75 billion in assets under management and is the private markets division of Schroders PLC, and will be known as Schroders Greencoat.
The remaining 25% is owned by Greencoat Capital's founding directors, Schroders spokeswoman Estelle Bibby said in an email.
Schroders paid £358 million ($467 million) in cash, with an option to purchase the remaining 25%, under certain conditions. The amount paid is subject to achievements set by Schroders, including stretch revenue targets and the continued employment of the management team, Ms. Bibby said.
Greencoat, with £6.8 billion in AUM as of Dec. 31, pioneered large-scale renewable energy infrastructure investing in public and private formats in Europe and is expanding in the U.S., the Schroders news release said.
It also said Greencoat has delivered significant annual growth, including 48% compound annual growth per year over the past four years. From Dec. 1, 2020, to Nov. 30, 2021, Greencoat had £1.6 billion in net new commitments for private funds and equity fundraising for public funds, according to the release, which said the two firms "have an ambition to be a global leader in this fast-growing and important investment sector."
U.S. and European markets for renewable energy assets are forecast to grow by more than $1 trillion by 2030, and lead to "accelerating institutional client demand" for products to meet their own sustainability commitments, Schroders said.
Peter Harrison, group CEO for Schroders PLC said in the release that U.K. pension funds "are increasingly focused on their net-zero investment obligations following recent regulatory requirements for U.K. schemes to publish their climate-risk disclosures by the end of 2022."
As of Dec. 31, Schroders had $991 billion in AUM, the release said.
