The deal also provides a series of options for Schroders to acquire the remaining stake of 25% in the specialist investment manager
Greencoat operates nearly 200 power generation facilities in Europe, the UK, and the US. (Credit: Pexels from Pixabay)
Schroders has agreed to acquire a stake of 75% in Greencoat, a specialist investment manager focused on renewable energy infrastructure for an initial consideration of £358m.
Greencoat is among the major renewable infrastructure managers in Europe with £6.7bn of assets under management (AUM) at 30 November 2021. It invests in wind, solar, bioenergy and heat.
Founded in 2009, Greencoat operates around 200 power generation facilities in Europe, the UK, and the US. The assets have a total generation capacity of more than 3GW.
Based in the UK, Schroders is an asset management company. The transaction is said to be in line with its strategy to develop a comprehensive private assets platform and boost its position in sustainability.
Under the terms of the agreement, Schroders is provided with a series of options to acquire the remaining stake of 25% in Greencoat at a price calculated on a fair market valuation at the time of exercising the options it has secured.
The structure of the option arrangements has been designed for ensuring maximum stability and alignment between the four founders of Greencoat and Schroders.
Schroders group chief executive Peter Harrison said: “Greencoat is a market-leading, high growth business, with an outstanding management team, which provides access to a large and fast-growing market in high demand among our clients.
“Its culture is an excellent fit with ours and Greencoat’s focus aligns very closely to our strategy, continuing our approach of adding capabilities in the most attractive growth segments we can provide to our clients.”
Under Schroders’ ownership, Greencoat is expected to improve its growth and offering to clients considerably. This will be possible by utilising Schroders’ distribution reach, management experience, sustainability capabilities, and brand.
The renewable infrastructure manager will be part of Schroders Capital, which is the private markets division of Schroders.
Greencoat co-founder Richard Nourse said: “We are extremely proud of what the brilliant team at Greencoat has together achieved, creating a market-leading renewables asset management firm in the UK and Ireland, a strong platform in Europe and an important expansion into the US.
“Combining this team with Schroders’ global distribution network and expertise will enable clients to capitalise on the unequalled opportunity that our sector represents – a trillion dollar investable universe – and the chance to meaningfully support the global transition to net zero.”
The deal is expected to close in the first half of 2022, upon the receipt of regulatory approval.
Earlier this year, Greencoat announced that funds managed by it will acquire a stake of 55% in a 405MW wind portfolio from EDP Renewables in Illinois.