Macquarie Asset Management reaches $3 billion close of Green Energy Transition Solutions fund, co-investment commitment

Macquarie Asset Management announced Sept. 19 the final close of Macquarie Green Energy Transition Solutions with over $3 billion of total fund and co-investment commitments.

MGETS is Macquarie’s first dedicated energy-transition fund that targets opportunities beyond mature renewables.

MGETS is focused on investing in companies that leverage proven technologies and infrastructure to provide the solutions to decarbonizing energy sectors across the economy.

The fund’s target subsectors include energy storage, distributed energy, renewable fuels, clean transportation, carbon capture and circular economy.

MGETS is well-progressed in its portfolio construction, according to Macquarie Asset Management, with 12 closed investments and over 65 percent of the fund committed to investments.

The MGETS global portfolio is well-diversified, Macquarie Asset Management said, spanning across geographies, technologies and underlying sectors.

MGETS portfolio companies include Eku Energy (battery-energy storage in Europe and Asia Pacific), SkyNRG (global sustainable aviation fuel business), Calibrant Energy (distributed-energy solutions for industrial and commercial clients in North America), and Verkor (French EV-battery manufacturer).

MGETS has raised over $2.4 billion of fund commitments along with an additional $647 million to date of committed co-investment to MGETS’s portfolio companies.

This enables it to address the growing scale of energy-transition opportunities and capitalize on attractive follow-on investments.

The fund exceeded its target size of $2 billion, attracting commitments from a diversified global investor base spanning pension funds, insurance companies, sovereign-wealth funds and asset managers across the world.

A portion of the co-investment was secured via a dedicated Macquarie-managed investment vehicle established for Vertelo, a fleet electrification-solutions platform in India.

A total of $405 million of commitments have been secured for the Vertelo investment vehicle, with approximately $133 million from MGETS as the Fund’s 12th investment.

Combining commercial capital with catalytic concessional capital, the Vertelo transaction demonstrates Macquarie’s ability to mobilize capital at scale in the growing Indian market through innovative partnerships while delivering an attractive proposition to investors.

“The significant investment requirements of the global energy transition present an opportunity to build the infrastructure of tomorrow while delivering attractive risk-adjusted returns for our investors,” said Chris Archer, the executive director of Macquarie’s green investments. “Key to this will be building out proven technical solutions that are now becoming more widely deployed. Drawing on our global asset-management expertise and green-investment capabilities, we are proud to be able support the growth and de-risking of businesses and bring them to scale. We are delighted to reach the final close of MGETS and thank our investors for their continued confidence and support.”

Macquarie said it has been driving practical climate solutions for almost 20 years, with its first investments in renewables dating back to 2005.

Today, through Macquarie Asset Management’s green-investment team, its green-investment strategies manage $17 billion in global assets supporting the energy transition, working with over 30 portfolio companies.

Macquarie said its team of dedicated specialist green investors is committed to delivering solutions at scale that enable the transformation of energy systems and provide the secure energy required by communities and businesses into the future.