Macquarie, the worlds largest infrastructure investor, has raised 1.6 billion euros 1.93 billion for its second global renewables fund, driven by strong demand from institutional investors in Britain and Germany.
Countries and companies are seeking to increase their usage of renewable energy to lower carbon emissions and fight climate change. At the same time, record low interest rates have crimped fixed income returns and boosted the allure of alternative assets.
Macquarie Infrastructure and Real Assets MIRA, manager of the fund, said it had drawn investment from 32 institutions, including pension schemes, insurers and sovereign wealth funds, helping it exceed a minimum target of 1 billion euros.
While Europebased investors contributed most of the capital German and British investors accounting for 30 each the fund, Macquarie Green Investment Group Renewable Energy Fund 2, also attracted interest from Asia Pacific and North America.
It will target wind and solar projects in Western Europe, the United States, Canada, Mexico, Japan, Taiwan, Australia and New Zealand.
In the geographies this particular fund is focused on, theres over 300 gigawatts of additional capacity required in the next five years, Leigh Harrison, Head of MIRA EMEA, told Reuters.
While the push by countries to meet the terms of the Paris climate accord was a big driver of demand, many were also looking to renewables projects to help Build Back Better from the economic ravages of the COVID19…