Schroders Greencoat raises £330 million for renewable infrastructure fund from UK Local Government Pension Schemes

Schroders Greencoat, the specialist renewables manager of Schroders Capital, today announces it has closed £330 million in commitments from six Local Government Pension Schemes in the Brunel Pension Partnership.

The mandate will make long-term investments in renewable infrastructure and energy transition assets across the South West of England.

Schroders Greencoat will target investments in a wide range of renewable energy technologies, including in traditional sectors of solar PV and wind, and innovative energy transition sub-sectors such as battery storage and green hydrogen production. With a large amount of capital being deployed into a concentrated geography, the investments are expected to deliver significant local impact across the region, creating jobs in the South West while providing clean energy to the national grid.

The mandate targets investments in the counties of Dorset, Somerset, Avon, Cornwall, Devon, Wiltshire, Oxfordshire, Buckinghamshire and Gloucestershire, and represents the largest-ever commitment by UK local government pensions into place-based and locally-focused renewable energy infrastructure.

The investments will not only contribute to meeting the UK’s net zero and energy security targets, but also the net zero targets and environmental impact goals of the Local Government Schemes. Schroders Greencoat’s aggregate managed assets in the UK currently total 2.8 GW in capacity, removing the need for over 2.6 million tonnes in carbon emissions annually.

In deploying defined benefit pension capital into private assets in order to deliver secure, long-term returns, the mandate is also well aligned with the UK Government’s pension reform goals.

It leverages Schroder’s expertise and future ambitions in placed-based impact investing, alongside its experience in creating funds in collaboration with Local Government Pension schemes.

It follows Greencoat Cornwall Gardens LP launched in 2022; a tailored fund targeting renewable assets in Cornwall supported by Cornwall Pension Fund and Brunel, as well as the launch of the Schroders Capital UK Real Estate Impact strategy focused on housing and job creation in deprived areas.

Jennifer Devine, Head of Wiltshire Pension Fund representing the fund’s LGPS partners, said:  
“We are thrilled to be involved in this collaboration with other LGPS funds. Together we can use our scale to make a substantial, widespread positive impact, actively investing in and benefiting from the transition to a low carbon economy. To be able to deliver this impact across the South West and support business and societies in greening their grid is fantastic. We’re delighted to be working with Schroders Greencoat again, and levelling up our impact across the region.”

Matt Ridley, Partner, Schroders Greencoat, said:

“Investing in renewable generation assets across Brunel’s constituent counties generates resilient cashflows for underlying investors, and clean energy where their pension beneficiaries work and live. Schroders Capital has the scale and pipeline to replicate this model across the country, with investment opportunities across a range of technologies and scales. We’re very pleased to be working with Brunel and its partners again – our close relationship with them, which dates back to 2019, is key to making initiatives like this one possible.”

Peter Harrison, Chief Executive Officer, Schroders, said: 

“Our LGPS clients want to meet their net zero obligations, and deliver tangible impact in their regions. At the same time, significant investment is required in the UK to meet its energy security and renewable infrastructure requirements now and in the coming years.

“Tailored partnerships such as the one announced today provide a framework for how place-based investments can meet all of these challenges, and build on the Wales Pensions Partnership mandate we announced earlier this year, where there is a strong requirement to source local deals. Schroders is committed to playing a key role in this space.”

For further information from Schroders Greencoat, please contact:

For further information from Brunel Pension Partnership / Wiltshire Pension Fund, please contact:

About Schroders Greencoat

Schroders Greencoat LLP, formerly Greencoat Capital LLP, is a specialist manager dedicated to the renewable energy infrastructure sector. With teams in London, Dublin, Frankfurt, Amsterdam, Copenhagen, and Madrid, as well as in New York and Chicago, and over £8.6 billion under management*, Schroders Greencoat is one of the largest dedicated managers in Europe. It was founded in 2009 and currently has fund mandates with strategies investing into wind, solar, bioenergy and renewable heat in the UK, Europe and the United States. In total, the company manages renewable infrastructure assets with an aggregate net generation capacity of over 5.6 GW*.

For more information, please visit https://www.schrodersgreencoat.com.

* as of 30th June 2023

Schroders Capital

Schroders Capital provides investors with access to a broad range of private asset investment opportunities, portfolio building blocks and customised private asset strategies. Its team focuses on delivering best-in-class, risk-adjusted returns and executing investments through a combination of direct investment capabilities and broader solutions in all private market asset classes, through comingled funds and customised private asset mandates. The team aims to achieve sustainable returns through a rigorous approach and in alignment with a culture characterised by performance, collaboration and integrity.  

With $86.7 billion (£68.2 billion; €79.5 billion)* assets under management, Schroders Capital offers a diversified range of investment strategies, including real estate, private equity, secondaries, venture capital, infrastructure, securitised products and asset-based finance, private debt, insurance-linked securities and BlueOrchard (Impact Specialists). 

*Assets under management as at 30 June 2023 (including non-fee earning dry powder and in-house cross holdings)

Schroders plc

Schroders is a global investment management firm with £726.1 billion (€846.1 billion; $923.1 billion) assets under management, as at 30 June 2023. Established in 1804, Schroders continues to deliver strong financial results in ever challenging market conditions, with a market capitalisation of circa £7 billion and over 6,100 employees across 38 locations. The founding family remains a core shareholder, holding approximately 44% of Schroders’ shares.

Schroders has benefited from a diverse business model by geography, asset class and client type. It offers innovative products and solutions across four core growing business areas; asset management, solutions, Schroders Capital (private assets) and wealth management. Clients include insurance companies, pension schemes, sovereign wealth funds, high net worth individuals and foundations. Schroders also manages assets for end clients as part of its relationships with distributors, financial advisers and online platforms.  

Schroders aims to provide excellent investment performance to clients through active management. It also channels capital into sustainable and durable businesses to accelerate positive change in the world. Schroders’ business philosophy is based on the belief that if we deliver for clients, we will deliver for our shareholders and other stakeholders.

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