Schroders is today announcing that it has completed the acquisition of a 75% shareholding in Greencoat Capital, one of Europe’s largest investment managers dedicated to the high-growth renewable infrastructure market. Greencoat, will become part of Schroders Capital, our growing private markets division. The business will be known as Schroders Greencoat.
Schroders Greencoat is a leading player in its field across the UK & Ireland and is the pioneer of large-scale renewable energy infrastructure investing. The business has delivered AUM growth of over 48% per annum over the past four years and today manages £6.8 billion on behalf of its clients. It has a strong platform in Europe and is rapidly expanding in the US, this positions the business well to capture opportunities in a market expected to grow significantly over the near-term. Schroders Greencoat has the ambition to become a global leader in this fast-growing sector.
The recent heightened geopolitical uncertainty, which has resulted in global natural resource supply issues, has increased the urgency and demand for a rapid expansion of renewable power globally, further supporting the strategic importance of this acquisition.
Peter Harrison, Schroders Group Chief Executive, commented:
“As governments around the world look to accelerate towards net zero goals, providing capital for the energy transition will become ever more important. In the UK, pension schemes are increasingly focused on their net zero investment obligations following recent regulatory requirements for UK schemes to publish their climate risk disclosures by the end of 2022.
“The completion of the Greencoat Capital transaction expands our offering in an area of high client demand. Institutional investors in the UK and globally are looking for renewable infrastructure investments which provide, long-dated, inflation-linked returns.”
Richard Nourse, who founded Greencoat in 2009, commented:
“We are delighted to have found a partner in Schroders that shares our mission to build a global leader in renewables. Combining Greencoat’s leading renewable investment expertise with Schroders’ global distribution network will enable clients to capitalise on the unrivalled opportunity that our sector represents, a trillion dollar investable universe and the chance to support meaningfully the global transition to net zero.”
Schroders announced its intention to acquire a majority stake in Greencoat in December 2021.