Mirova, a unit of French asset manager Natixis Investment Managers, has raised €1.2 billion ($1.03 billion) in a second close for its latest energy transition fund, boosted by what it called “strong support” from both returning investors and new partners.
The fund, which was launched last year, is focused on investments in the renewable energy sector, including solar, onshore wind and hydropower, as well as energy storage, low-carbon mobility and energy efficiency.
The French sustainable investor is targeting a €2 billion ($2.3 billion) final close by the middle of next year for its sixth flagship fund, which invests in greenfield, brownfield and corporate infrastructure projects across the world.
About 80% of the capital raised so far has come from existing investors, mostly European and Asian institutional investors, including pension funds and insurance companies, Raphael Lance, Mirova’s deputy general manager and global head of private assets, told ImpactAlpha. New partners include institutional investors, family offices and other professional investors, also from Europe and Asia.
Investors are attracted by the resilience and long-term stability of infrastructure assets linked to the energy transition, says Lance.
“These investments offer predictable cash flows and contribute to global decarbonization goals, which is increasingly important for institutional investors seeking both financial returns and positive impact,” he said.
Follow-on fund
Mirova closed its fifth energy transition fund in 2022 after raising €1.6 billion. Investors in that fund included PME, a Dutch pension fund for metal workers and the technological industry, which made the commitment after selling its fossil fuel investments the previous year.
The latest fund, Mirova Energy Transition 6, has to date made 10 investments totaling more than €960 million, with half of them dedicated to three independent power producers, one-third invested in large renewable companies and the remainder going to the e-mobility sector.
Headquartered in Paris, Mirova has been active in the energy transition infrastructure sector for two decades, funding more than 1,000 projects in 49 countries. Mirova and its affiliates had €33 billion in assets under management, including €4.5 billion in energy transition infrastructure investments, as of the end of September.
