BNP Paribas Asset Management (BNPP AM) has launched the BNP Paribas Low Carbon Transition Infra Equity fund, targeting €750m (£621m) in assets from institutional investors such as insurers, pensions funds and corporates.
The fund is classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR). It aims to build a diversified portfolio of eight to 12 equity investments centred around capital-intensive infrastructure projects in the mid-market segment in European countries. These projects will support the energy transition, involving sectors such as batteries, hydrogen and carbon capture.
The fund has already made two investments this year including a minority stake in Absolute Energy, a renewables developer in Italy that aims to develop and build a 3.0-gigawatt pipeline of solar photovoltaic, wind and storage projects, and a co-controlling stake alongside Mirova in Arkolia, a French renewable energy developer that specialises in the rooftop photovoltaic market.
The fund is managed by BNPP AM’s private assets business unit, which under the management of David Bouchoucha, has AUM and advisory of approximately €40bn (£33bn) as of October 2024.
Rodolphe Brumm, head of infrastructure private equity at BNPP AM, said: “We are thrilled to launch our first infrastructure private equity fund, a testament to the growing client demand for this asset class and the pressing need for low carbon investments.
“Backed by €400m (£331m) anchor commitments illustrating the strong support of the BNP Paribas Group, this initiative underscores our central role in financing the energy transition. With two deals already completed – solar PV projects in Europe – we are proud to create value for our investors while contributing to building a more sustainable future.”
