The fund, which targets professional investors only, aims to raise €200 million and generate a net return of 10- 11%.
According to an Ernst & Young Survey commissioned by Mirova, €236 billion will need to be invested over the next 5 years in the onshore wind, photovoltaic and biomass space in order to meet the 2020 European targets.
Building on the success of the Fideme (2002) and Eurofideme 2 (2008)(6) funds, Mirova created Mirova Eurofideme 3 to offer European institutional investors access to project companies that are developing renewable energy assets across Europe (mainly in the wind and photovoltaic space).
The investment strategy is based on developing long-term partnerships with industrial companies by co-investing and providing support during the construction and operational stages. Once the infrastructure projects have been running for several years, the fund will exit the projects and sell them on to industrial or financial players.
Raphaël Lance, Head of Infrastructures Renewable Energies, Mirova, stated:
Renewable energy infrastructure provides an attractive, tangible asset class closely connected with the real economy and which addresses people's direct and concrete needs. It enables professional investors to diversify their portfolios through assets carrying moderate risk, in a fast growing and forward-looking sector. These investments aim to protect against inflation and market volatility, while generating regular returns.
Mirova has over 10 years' experience investing in renewable energy projects and is one of the first European asset managers to launch a 3rd fund on this particular expertise. Mirova draws on a team of dedicated experts who manage a portfolio of high quality and diversified investments in France and in Europe. During the past 10 years, Mirova's Renewable Energy team has invested in 66 projects (including 31 wind farms) and has supported the construction of production facilities generating 700 MW of clean energy.