Eurazeo announces that its maiden infrastructure program (comprising the Eurazeo Transition Infrastructure Fund – ETIF or Fund – and a co-investment vehicle) has held its final close at €706 million in aggregate commitments from institutional investors across North America, EMEA and France. The final close exceeds the original €500 million target by over 40% only 20 months after first closing, reflecting the strong investor demand for the Fund’s diversified SFDR Article 9 investment strategy focused on the transition of essential services delivered by infrastructure to a low carbon economy.
The diverse international institutional investor base, including commitments from both infrastructure allocations and dedicated climate/impact-focused pools of capital, underscores the robust sustainability framework of ETIF designed to drive real-world impact with measurable results. ETIF’s investors include the European Investment Fund, which made a cornerstone commitment of €75m at first closing in November 2022, and large consultants, asset managers, banks, pension funds, insurance companies, sovereign and fund of funds.
ETIF has committed capital consistently throughout the fundraising process, building a portfolio of 6 transition infrastructure companies representing approximately 60% of the total capital raised. ETIF’s portfolio contributes to the objective of delivering attractive, value-add returns to its investors while achieving carbon net neutrality by 2040. ETIF invests in transition assets across the energy, digital, clean transport, and environmental sectors. The Fund’s commitments to date include the following companies, several of which have already witnessed valuation uplifts within 24 months of investment:
- Ikaros Solar, a Belgian rooftop solar developer
- Resource, a joint venture operating a plastic waste sorting plant in Denmark
- Electra, a pan-European electric vehicle (EV) fast charging operator
- Etix Everywhere, a regional edge data center provider
- TSE, a solar energy group with a focus on agrivoltaic projects
- 2BSI, a diversified waste management company
Laurent Chatelin, Partner – Infrastructure, declared:
“The success of ETIF’s fundraise, exceeding the initial target by more than 40%, demonstrates the market’s growing appetite for diversified sustainable infrastructure investment strategies that can deliver both financial performance and quantifiable ESG impact. We are grateful for the support of our rapidly expanding investor base who confirmed their confidence in our ability to deliver attractive risk-adjusted return. We are thrilled by the pace and quality of our investments, with c.60% of ETIF deployed to date and the Fund already out of the J-curve. This highlights the strength and differentiation of ETIF’s proven sustainability framework and diversified investment strategy across the energy, digital, clean transport and environmental sectors.”
Christophe Bavière and William Kadouch-Chassaing, Co-CEOs, declared:
‘’The closing of our maiden transition infrastructure program illustrates the attractiveness of the Eurazeo brand and the relevance of its strategy for its investor clients. This fund and its investments in 6 portfolio companies are an emblematic illustration of our mission to build European champions by focusing on the mid-market, growth and impact segments. Our diversified offering, through investment strategies delivering financial performance with significant growth potential, is fully recognized by investors.‘’