Partnership between LGIM and NTR reaches milestone as institutional clients demand greater direct access to the European energy transition
19 Apr 2023
Legal & General Investment Management (‘LGIM’), the largest UK-based asset manager and NTR, a leading renewable energy specialist, have successfully raised €390 million in committed capital and co-investment opportunity in the first close of the L&G NTR Clean Power (Europe) Fund (the ‘Fund’).
The Luxembourg-based Fund invests in clean power infrastructure assets across wind, solar and energy storage, putting private capital to work to drive Europe’s decarbonisation and energy security agenda. It is classified as an Article 9 fund under the European Union’s Sustainable Finance Disclosure Regulation.
The Fund is designed for institutional investors with a focus on pension funds, insurers and endowments. At first close, the Fund has raised commitments from a range of sources, including from European asset management, Japanese institutional investors and theNatWest Group Retirement Savings Plan, which utilised LGIM’s life company platform to gain exposure to the fund. This is in addition to €50 million of co-investment from Legal & General (‘L&G’).
In a drive to boost energy independence and reduce emissions, governments across Europe are looking to accelerate the rollout of clean energy generation technologies and energy efficiency investments - all of which require significant investment and asset creation. The Fund has already started to deploy capital in support of this programme, announcing its first asset acquisitions in January 2023 - three Spanish pre-operational solar projects from global renewable energy developer BayWa r.e.
L&G and NTR have worked together since 2015, when L&G became a cornerstone investor in NTR’s first two funds. For the Clean Power (Europe) Fund, the trusted stewardship and institutional network of one of the world’s largest investment managers is brought together with the nimble, specialist expertise of a leading clean energy asset manager.
As the asset manager, NTR sources the pipeline of assets for the Fund to invest in, as well as applying its construction and asset management expertise across the life cycle of clean energy infrastructure. As fund manager, LGIM provides the scale of its distribution, stewardship and investment capabilities to facilitate the vital role that institutional finance is playing in funding clean power generation.
Bill Hughes, Global Head of Real Assets at LGIM:“This marks LGIM’s first infrastructure equity raise and we’re delighted to announce first close of the Fund. This milestone is particularly pleasing given the recent private markets backdrop in Europe and Asia, and demonstrates the value of assets that combine stable and robust sources of income with clear sustainability credentials. Deploying private capital will be vital to deliver the pipeline of assets we need to reach net zero - this partnership aims to do just that, filling the funding gap and accelerating the construction and operation of clean power infrastructure.”
Rosheen McGuckian, CEO of NTR:
“We’re delighted to have secured such strong interest from a wide range of European and Asian institutional investors to progress our strategy to invest in clean power assets across Europe, focusing on proven technologies to address the energy transition. The Fund aims to offer exposure to a portfolio of assets across the full lifecycle of clean power projects in Europe, providing diversification across technologies, regulatory regimes and climate profiles. Our ability to acquire early in the life cycle and use innovative engineering to optimise assets, combined with LGIM’s stewardship, unlocks additional value for investors.”
LGIM and NTR look forward to updating the market on further acquisitions and fundraising in due course.
Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with over £1.2 trillion in total assets under management* of which 39% is international. We have a unique and highly synergistic business model, which continues to drive strong returns. Legal & General provides powerful asset origination and management capabilities directly to clients, which also underpin our leading retirement and protection solutions. We are a leading international player in Pension Risk Transfer, in UK and US life insurance, and in UK workplace pensions and retirement income. Our purpose is to improve the lives of our customers and create value for our shareholders. Through inclusive capitalism, we are investing in long-term assets, such as real estate and infrastructure, that can help build a better society for the future.
*as at HY 2023
Legal & General Investment Management
LGIM is one of Europe’s largest asset managers and a major global investor, with total assets under management of £1.16 trillion1 ($1.47tn, €1.35tn, CHF 1.31tn). We work with a wide range of global clients, including pension schemes, sovereign wealth funds, fund distributors and retail investors.
For more than 50 years, we have built our business through understanding what matters most to our clients and transforming this insight into valuable, accessible investment products and solutions. We provide investment expertise across the full spectrum of asset classes including fixed income, equities, commercial property, and cash. Our capabilities range from index-tracking and active strategies to liquidity management and liability-based risk management solutions.
1 Data as at 30 June 2023. Data combines assets under management by LGIM in the UK, LGIMA in the US and LGIM Asia in Hong Kong.
Assets under management include securities and derivatives positions
*as at HY 2023