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Schroders in talks to buy a stake in Greencoat Capital

Schroders in talks to buy stake in renewables funding agency Greencoat Capital because it eyes ESG increase

  • Schroders has confirmed it’s in talks to buy renewables specialist Greencoat 
  • Reports recommend it’s shut to taking a 75 per cent stake for £360m  
  • The agency runs funds together with London-listed Greencoat UK Wind 

Schroders is in superior talks to buy a vital stake in renewable infrastructure agency Greencoat Capital, it stated this morning.

The fund supervisor confirmed the talks this after Sky News reported that Schroders was shut to taking a 75 per cent stake for about £360million, with an possibility to buy the remainder of the agency.

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‘There is no certainty these talks will lead to any final agreement,’ stated Schroders, which added that it’s going to proceed to ‘evaluate potential acquisition opportunities in line with its strategy to build a comprehensive private assets platform and enhance its leadership position in sustainability’. 

A deal with renewables specialist Greencoat Capital will significantly expand Schroders' ESG presence

A deal with renewables specialist Greencoat Capital will significantly expand Schroders’ ESG presence

Greencoat Capital, which has around £6billion under management, was put up for sale earlier this year to sound out prospective buyers. It runs funds including Greencoat UK Wind and Greencoat Renewables, as well as some specialising in solar assets.

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‘The Board confirms that any such potential transaction would relate to Greencoat Capital LLP, not Greencoat Renewables, and is confident that, should any transaction proceed, it would not impact Greencoat Capital’s role as investment manager to Greencoat Renewables,’ the agency stated.

The deal considerably expands Schroders’ presence in the realm of ESG – environmental, social and governance – which has grow to be widespread amongst fund managers amidst a wave of sustainability-focused investments.

In 2019, Schroders purchased a majority stake in BlueOrchard, an influence funding supervisor centered on rising and frontier markets.

In June it debuted the Schroder ISF BlueOrchard Emerging Markets Climate Bond fund, a UCITS technique providing each day liquidity.

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Meanwhile the Schroder BSC Social Impact made its market debut a 12 months in the past, elevating £75million on the time, falling wanting its £100million goal.

In its most up-to-date share pricing it raised £10.8million, lower than half of the £26million it stated it might probably elevate.

It comes at a time when different belief launches had been scrapped due to inadequate shopper demand, together with the Liontrust ESG belief.

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