Schroders, one of Britain’s largest fund managers, takes another step in eco-friendly investing by acquiring control of a leading renewable energy investment group for around Â£ 360million sterling.
Sky News has learned that Schroders is in advanced talks to buy a 75% stake in Greencoat Capital, which is among Britain’s largest managers of renewable energy investments.
Sources said a deal could be announced within days, adding to the roughly Â£ 717 billion in assets Schroders already manages.
Transaction will significantly expand Schroders’ private asset business and footprint in the increasingly critical area of ââenvironmental, social and governance (ESG) investments that drive much of the business companies in the asset management industry.
The deal will include an option to buy the remainder of Greencoat Capital, according to an insider.
Greencoat Capital, which has around Â£ 6bn under management, manages funds such as London-listed Greencoat UK Wind and Greencoat Renewables.
It also manages funds specializing in solar assets and bioenergy and heat.
The company went on sale earlier this year when it hired Fenchurch Advisory Partners to survey potential buyers.
Founded in 2009 by Richard Nourse, one of the city’s most prolific energy bankers, Greencoat is one of a growing number of asset managers specializing in renewable energy.
In 2019, Schroders acquired full control of BlueOrchard, an impact investment manager focused on emerging and frontier markets.
Sources in the city said Greencoat Capital’s subbiders included a number of other large fund managers.
The purchase of Greencoat will increase Schroders’ exposure to long-lived assets that offer a stable return in terms of return on investment.
Managing the transition to a low-carbon economy has become the main theme of global investment, with particular emphasis on the industry’s approach to investment management towards the issue when it comes to investing. recent COP26 summit in Glasgow.
Schroders declined to comment on Wednesday, while Greencoat Capital could not be reached for comment.