British fund manager Schroders has agreed to buy a 75% stake in renewables investment firm Greencoat Capital, the fund behind Dublin listed Greencoat Renewables.
Schroders has agreed to pay £358m for the majority stake, it said in a statement, valuing Greencoat at around £477m.
Greencoat is one of Europe's largest renewable infrastructure managers with £6.7 billion of assets under management as of 30 November 2021, according to Schroders.
It focuses on renewable energy infrastructure investing including wind, solar, bioenergy and heat and operates nearly 200 power generation assets across the UK, Europe and the US with an aggregate net generation capacity of over 3 gigawatts.
Greencoat will become part of Schroders' private markets division - Schroders Capital - and will be known as Schroders Greencoat.
It will help meet institutional client demand for environmentally-positive products in order to meet their own sustainability commitments, Schroders said.
The move comes as fund managers compete for a global wave of sustainability-focused investments.
Founded in 2009 by energy banking veteran Richard Nourse, Greencoat has over £6 billion of assets under management.
In a statement, the Board of Greencoat Renewables said it welcomed today's deal, and the additional capabilities which Schroders will bring to Greencoat Capital to augment its offering and value.
"There is no change to Greencoat Renewables' relationship with Greencoat Capital nor to the Investment Management Agreement," the company said.
"The Greencoat Capital team that has worked with the Board of Greencoat Renewables for the past four years since IPO will remain in place," it stated.
It also said there is also no change to its investment strategy, which continues to be overseen by the Board and approved by Greencoat Renewables' shareholders.
