Macquarie raises €1.6 billion for renewable energy investment

Macquarie Infrastructure and Real Assets (“MIRA”) has raised more than €1.6 billion for investment in renewable energy with the final close of Macquarie Green Investment Group Renewable Energy Fund 2 (“MGREF2”) – exceeding its initial minimum fundraising target of €1 billion.

MGREF2 is a 25-year closed-end fund which will invest in a diversified portfolio of assets including platforms and construction and operational stage wind and solar projects in Western Europe, the United States, Canada, Mexico, Japan, Taiwan, Australia and New Zealand.

MGREF2 is managed by MIRA and will draw on the deep technical expertise in Macquarie’s Green Investment Group (“GIG”) when investing in and managing construction stage projects, and to provide tailor made green impact reporting to its underlying investors. MGREF2 and GIG will also explore opportunities for co-investment – bringing together the specialist capabilities of GIG with the long-term capital and investment expertise of MIRA.

MGREF2 attracted commitments from 32 investors including pension funds, local government pension schemes, insurers and sovereign wealth funds. Europe was the largest source of capital for the fundraise, with other commitments received from investors in Asia-Pacific and North America. MGREF2’s contribution to the low carbon transition was a key driver of investor interest in the strategy, with many seeking exposure to assets that drive positive environmental change.

Leigh Harrison, Head of MIRA EMEA, said: “Our changing climate presents profound challenges to our environment, economy and way of life. It is vital we 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.

“As custodians of the world’s first dedicated operational offshore wind fund, we’ve been committed to developing a successor to harness deep institutional capital pools to help achieve net zero. MGREF2 is the next step in this journey and we are delighted with the strong support the fund has received from our investors.”

MGREF2 has made two investments to date, having acquired a 10 per cent stake in the 576 MW Gwynt y Môr Offshore Wind Farm in the United Kingdom and a 50 per cent stake in a 268 MW portfolio of operating residential rooftop solar projects across the United States.

MGREF2 was launched following the success of its predecessor fund Macquarie Green Investment Group Renewable Energy Fund 1 (“MGREF1”), the world’s first dedicated operational offshore wind fund. MGREF1 was raised by the Green Investment Bank and has been managed by MIRA since Macquarie Group’s acquisition of the business from the UK Government in 2017. Today, MGREF1 manages investments in a 1,450 MW portfolio of six offshore wind farms around the United Kingdom.

MIRA is the world’s largest infrastructure manager and a major global investor in clean energy, overseeing investments in 12.3 GW of green generation capacity globally. In December, MIRA committed to investing and managing its portfolio in line with net zero emissions by 2040.