Hamburg/Luxembourg. – The partnership between the private bank Berenberg as fund initiator and investment advisor and BayernInvest Luxembourg as alternative investment fund manager (AIFM), which was formed in 2017, was able to further increase the capital volume by successfully launching the seventh credit fund in the first half of 2024. This brings the total capital commitments for the funds jointly launched by Berenberg and BayernInvest to a new milestone of one billion euros.
The recently launched Berenberg Green Energy Debt Fund V complements a series of six previously launched debt funds, all of which are focussed on financing forward-looking projects in the renewable energy and digital infrastructure sectors. The particular focus is on providing debt capital for wind power, solar energy and battery storage projects. In addition, two of the funds support the expansion of essential digital infrastructure, in particular fibre optic networks (FTTH/FTTC) and state-of-the-art data centres. The focus of the funds lies on unitranche and junior debt financing for the construction and operating phases, although late development phases can also be financed under certain conditions.
Since the launch of the first fund in 2017, over 50 transactions with a total financing volume of around 1.7 billion euros have been successfully realised. As a result, green energy generation capacity of around three gigawatts has been financed, which corresponds to annual CO2 savings of up to two million tonnes and the supply of green electricity to more than one million households.
More than 100 institutional and private investors, including pension funds, insurance companies, banks, family offices, foundations and private individuals, have committed capital.
The funds of the younger generation are classified in accordance with Articles 8 and 9 of the EU Disclosure Regulation (SFDR). Thanks to their strong ESG focus, a large proportion of their investments are channelled into taxonomy-compliant projects, which underpins the pioneering role of Berenberg and BayernInvest regarding responsible and forward-looking investing.
The performance of all funds meets or exceeds the target return communicated at launch, which underlines not only the strategy but also the expertise and commitment of the two partners.
‘The successful launch of our seventh credit fund with a major institutional investor and the achievement of total capital commitments totalling one billion euros underline the confidence of our investors in our economically and environmentally sustainable investment strategy,’ says Torsten Heidemann, Head of Infrastructure & Energy at Berenberg.
‘The success of the funds jointly launched by Berenberg and BayernInvest shows the immense potential that lies in the financing of renewable energies and digital infrastructure. We are only at the beginning of a long-term development in which we are deploying targeted capital to accelerate the transition to a sustainable and digitally connected future,’ said Ralf Rosenbaum, CEO of BayernInvest Luxembourg.
And Marjan Galun, Chairman of the Board of Directors of BayernInvest Luxembourg, adds: ‘The demand for innovative financing solutions in these areas continues unabated. There are still many exciting and value-adding projects ahead of us.’
About Berenberg
Berenberg was founded in 1590 and is today one of Europe's leading private banks with its Wealth and Asset Management, Investment Bank and Corporate Banking divisions. The Hamburg-based bank is managed by personally liable partners and has a strong presence in the financial centres of Frankfurt, London and New York. The Infrastructure & Energy division, which is part of Corporate Banking, advises clients and investors on all transaction, financing and project-related issues. Germany's oldest private bank has already launched five green energy debt funds for professional investors with a total volume of over one billion euros. The funds finance renewable energy plants worldwide in the form of junior debt or as so-called senior collateralised unit tranches. At the same time, they contribute to the global energy transition and thus make an important contribution to society and the environment. More information at: www.berenberg.de/en
About BayernInvest
As an asset manager and German ESG specialist, BayernInvest offers customised investment and risk management concepts, professional fund management and market-leading sustainability reporting. BayernInvest Luxembourg S.A. ‘s alternative investment platform is also used to implement complex investment strategies in the area of alternative asset classes. With a volume under management of around EUR 90 billion (as at 31 July 2024) and as a wholly owned subsidiary of BayernLB, BayernInvest has regional roots with a focus on the international market. We make sustainability profitable. And profitability sustainable. Further information at www.bayerninvest.de and at www.bayerninvest.lu.
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