EIF V (Encavis Infrastructure Fund V) of EncavisAM and BayernLB is a new investment opportunity.
Its field of action
EIF V is a new fund for institutional investors dedicated to renewable energy. Thus, EIF V differs from its counterpart EIF IV. Indeed, EIF IV is exclusively for banks.
The new investment fund is aimed at insurance companies, pension funds and retirement funds. In addition, OMP Capital is providing a €50 million seed financing. Thus, the investor is the actor of customized credit financing in the framework of the energy transition in Europe.
The EIF V fund acquires assets that produce, convert and store energy from renewable sources. With a highly diversified portfolio, it focuses in particular on technologies in wind and solar farms. Finally, Encavis plans to expand into battery storage and possibly gas power solutions.
The objectives of the fund
The objectives are to establish a portfolio of assets to supply the European markets with green energy in a sustainable way. The first objective is to increase the fund to €600 million. In addition, Encavis AM issues the possibility to store up to €1.2 billion by investing equity.
Thus, the stable and long-term revenues obtained from the independent supply of green energy will bring benefits. They should enable the EIF V fund to generate annual returns of 6% to 8% over the next 25 years. Karsten Mieth, CEO of Encavis Asset Management AG says:
“Given the continued strong demand from institutional investors for sustainable investment opportunities, particularly in the renewable energy space, we are confident that this fund will be filled quickly.”
Therefore, Encavis will be in charge of the selection, audit and operation of the wind and solar farms. BayernInvest Luxembourg SA will supervise the management of the fund and pursue a strict sustainable investment strategy. In addition, BayernLB, in accordance with the ESG classification, will solicit and accompany investors.