Fundraising

‘Agri is the first sector to suffer from climate change’ – RGreen Invest

The energy transition-focused manager has closed its fourth fund on €670m, with the adaptation of agriculture to climate change part of its strategy.

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Paris-based RGreen Invest has closed its latest energy-transition vehicle, Infragreen IV, on €670 million, exceeding its €500 million target and increasing the proportion of international investors committing to the fund to roughly a third, up from 20 percent previously.

About €400 million, or 60 percent, of the fund, which invests in both equity and junior debt, has already been “invested, committed or implemented” across Europe, the firm said in a statement. “We are confident to have at the end of the year/beginning of next year, 75 percent of the total fund invested and committed,” Nicolas Rochon, founder and chief executive of RGreen Invest, told affiliate title Infrastructure Investor.

As part of its energy-transition strategy, Infragreen IV aims to support the adaptation of agriculture to climate change. To that end, the fund has invested in Sun’Agri, a developer of dynamic agrivoltaic projects.

“Agriculture is the first sector to suffer from climate change,” Rochon said. “Agrivoltaism brings to farmers a disruptive innovation that sustainably improves their production and saves water while allowing the generation of solar energy.”

Infragreen IV primarily targets renewable energy assets as well as sub-sectors that include electricity storage, network stabilisation, smart grids, energy efficiency, waste-to-energy and waste treatment.

High ESG standards

While ESG has always been “at the heart” of RGreen Invest’s investment strategy – opportunities are analysed in terms of environmental, social and governance risks and investments are monitored throughout their lifecycle – they are “without binding limits or additionality measurement”, Rochon explained.

Infragreen V, which is scheduled to launch in the spring of 2022, and which Rochon described as the firm’s “next-generation fund”, will target high standards in terms of intentionality, additionality and measurement.

“The carried interest will be linked to ESG objectives, aligning interests,” Rochon said. “We clearly hope this fund will be a great tool to fight against climate change and help people to adapt.”