Paris-based Energy Transition International Capital Partners is responding to the need for renewable energy project financing in southern, eastern and central Europe. Its focus: higher-risk junior debt for “small and mid-sized independent actors who play the leading role in Europe’s transition to sovereign and green energy,” said ETIC’s Simon Quiret.
The firm has closed on an initial €70 million ($83 million) for its second energy transition fund, toward a goal of €150 million. Commitments include €20 million from the European Bank for Reconstruction and Development. ETIC addresses “a financing gap [that] remains relatively underserved in the EBRD’s countries,” said the bank’s Karsten Sinner.
French insurance company Mutuelle assurance des instituteurs de France reupped for ETIC’s second fund.
Impact incentives
ETIC’s second fund is cutting checks of €5 million to €25 million for solar, onshore wind and energy storage projects. It has already committed half of the capital raised for projects in France, Italy, Romania and Hungary with a combined generation capacity of 330 megawatts.
ETIC allocates a portion of its take of portfolio returns, or carried interest, and 5% of its operating margins, to an endowment fund investing in essential goods and services in emerging markets.
