Macquarie Infrastructure Raises $1.9 Billion for Investment in Renewable Projects
The funding exceeded the initial minimum target of $1.2 billion
Macquarie Infrastructure and Real Assets (MIRA) has raised nearly €1.6 billion (~$1.93 billion) for investments in renewable energy projects with the closure of the Macquarie Green Investment Group Renewable Energy Fund 2 (MGREF2), according to a press release.
The latest funding round exceeded the initial minimum target of €1 billion (~$1.21 billion). The company will use the fund to invest in a range of portfolios, including wind and solar projects in western Europe, the United States, Japan, Taiwan, Australia, Canada, Mexico, and New Zealand.
At present, Macquarie is the world’s largest infrastructure manager and is managing 12.3 GW of projects worldwide.
The company will use Macquarie’s Green Investment Group’s expertise to invest and manage projects under construction and provide green impact reporting to the investors.
In the fund-raising exercise, Europe led the way with the largest capital source, with other investors from the Asia-Pacific region and North America. A total of 32 investors took part in the funding round, including pension funds, local government pension programs, insurers, and sovereign wealth funds.
The fund’s drive toward low-carbon transition was one of the main factors driving investors’ interest in the latest funding round.
Speaking on this latest development, Leigh Harrison, Head of MIRA, said: “Our changing climate presents profound challenges to our environment, economy, and way of life. We must take action to accelerate the shift to clean energy, building on the opportunities presented by rapid technological change, falling technology costs, and strong political and regulatory support. MGREF2 is the next step in this journey, and we are delighted with the strong support the fund has received from our investors.”
As of now, the investment fund has made two investments. It acquired a 10% stake in the 576 MW Gwynt y Môr offshore wind farm in the United Kingdom and a 50% stake in a 268 MW portfolio of operating residential rooftop solar projects across the United States.
MGREF2 was launched after the successful contribution of its predecessor, MGREF1, which is the world’s first operational offshore wind fund. At present, MGREF1 manages a portfolio of 1,450 MW of offshore wind projects across the United Kingdom.
According to Mercom’s 2020 Q4 and Annual Solar Funding and M&A Report, more than $18.1 billion was raised by 19 newly established funds that focus on renewable energy investments in 2020, compared to $10.3 billion raised by 31 new funds in 2019.
Recently, Macquarie’s Green Investment Group launched Cero Generation, a specialist solar energy company working across Europe to support a net-zero future transition. Consolidating GIG’s existing and future European solar activities, Cero has one of the largest solar development portfolios in the region, with an 8 GW portfolio comprising over 150 projects in the U.K., Italy, Spain, Poland, France, and the Netherlands.
In September last year, Total, a France-based oil, and gas company announced that it had joined hands with Macquarie’s Green Investment Group to develop over 2 GW of floating offshore wind projects in South Korea. Both companies entered into a 50:50 partnership to develop five floating offshore wind projects on the country’s eastern and southern coasts.