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Eurazeo’s Transition Infrastructure Fund secures €706 million, exceeding target by more than 40%

Posted on by darion

  • €706 million raised, exceeding the target of €500 million by 40%
  • Secured commitments from leading institutional investors, including the European Investment Fund
  • Invested in 6 transition infrastructure companies with the aim of achieving carbon neutrality by 2040

Eurazeo’s first infrastructure programme, including the Eurazeo Transition Infrastructure Fund (ETIF) and a co-investor, closed with €706 million. This exceeds the initial target of €500 million by 40%, just 20 months after the first close. The strong demand underlines the attractiveness of the SFDR Article 9 ETIF’s diversified investment strategy, which aims to transition essential infrastructure services to a low-carbon economy.

A diverse international institutional investor base, including infrastructure allocations and climate-focused capital, underlines ETIF’s strong sustainability framework. Key investors include the European Investment Fund, which has committed to invest EUR 75 million at the first close in November 2022, as well as asset managers, banks, pension funds, insurance companies and sovereign wealth funds.

ETIF has committed capital throughout the fundraising process, building a portfolio of six transition infrastructure companies, representing approximately 60% of the total capital raised. These investments aim to deliver attractive returns while achieving net carbon neutrality by 2040. The portfolio includes:

  • Ikaros Solar: Belgian developer of rooftop solar systems
  • Rescue: Joint venture operating plastic waste sorting plant in Denmark
  • Electra: Pan-European electric vehicle (EV) fast charging operator
  • Etix everywhere: Regional Edge Data Center Provider
  • TSE: A solar energy group focusing on agrivoltaic projects
  • 2BSI: Diversified Waste Management Company

Laurent Chatelin, Partner – Infrastructure, said:The success of ETIF’s fundraising, exceeding its initial target by over 40%, demonstrates the growing market appetite for diverse sustainable infrastructure investment strategies that can deliver both financial performance and measurable ESG impact. We are grateful for the support of our rapidly growing investor base, who have confirmed their confidence in our ability to deliver attractive risk-adjusted returns. We are excited about the pace and quality of our investments, with around 60% of ETIF deployed to date and the Fund already exiting the J-curve. This underlines the strength and differentiation of ETIF’s proven sustainability framework and diversified investment strategy across energy, digital, clean transport and environmental sectors.”

Related article: EU announces record €7 billion investment in climate-friendly transport infrastructure

Co-directors Christophe Bavière and William Kadouch-Chassaing added: “The closing of our first transition infrastructure program illustrates the appeal of the Eurazeo brand and the relevance of its strategy to its investor clients. This fund and its investments in six portfolio companies are emblematic of our mission to build European champions by focusing on the mid-market, growth and impact segments. Our diversified offering, through investment strategies that deliver financial performance with significant growth potential, is fully recognized by investors.”