December 5, 2024

BNP Paribas Asset Management (‘BNPP AM’) announces the launch of BNP Paribas Low Carbon Transition Infra Equity Fund I, targeting €750m from institutional investors such as insurers, pensions funds and corporates. The first vintage of BNPP AM’s low carbon infrastructure equity strategy is supported by BNP Paribas Group anchor commitments of €400m.

The BNP Paribas Low Carbon Transition Infrastructure Equity Fund I aims at building a resilient and diversified portfolio of 8 to 12 equity investments through direct minority participation in Core+ and Value-Add capital-intensive infrastructure projects in the mid-market segment. It will invest exclusively in European countries, supporting energy transition projects by focusing on clean energy, sustainable mobility and circular economy, including new sectors such as batteries, hydrogen and carbon capture. The investment team will leverage on BNP Paribas’ network and expertise, notably BNP Paribas CIB’s Low Carbon Transition Group capabilities.

The fund has already made two investments in 2024. In July, it acquired a minority stake in ISQ-backed Absolute Energy, a renewables developer in Italy aiming at developing and building a 3.0-gigawatt pipeline of solar photovoltaic, wind and storage projects. In November, the fund acquired a co-controlling stake alongside Mirova in Arkolia[1], a fast-growing French fully integrated developer, #2 IPP in the French rooftop photovoltaic market.

Classified as Article 8 under SFDR[2] the fund integrates a robust ESG[3] policy. The fund seeks to implement stringent selection criteria developed with BNPP AM’s Sustainability Centre to efficiently direct capital towards projects which are key to the energy transition.

Rodolphe Brumm, Head of Infrastructure Private Equity at BNP Paribas Asset Management explains:

“We are thrilled to launch our first infrastructure private equity fund, a testament to the growing client demand for this asset class and the pressing need for low carbon investments. Backed by €400m anchor commitments illustrating the strong support of the BNP Paribas Group, this initiative underscores our central role in financing the energy transition. With two deals already completed – solar PV projects in Europe – we are proud to create value for our investors while contributing to building a more sustainable future.”

Karen Azoulay, Head of Real Assets at BNP Paribas Asset Management adds:

"We are delighted to expand our established infrastructure franchise with the launch of BNP Paribas Low Carbon Transition Infra Equity Fund I. Since 2018, we have successfully invested in more than 80 infrastructure transactions, demonstrating the strength of our approach and the expertise of our seasoned investment team. With a proven track record in low carbon solutions, the support of the BNP Paribas Group, and the strong client interest in this space, we are confident in achieving a successful fundraising for this major milestone in our development."

BNP Paribas Low Carbon Transition Infra Equity Fund I is a Société en Libre Partenariat (‘SLP’) authorised by the French Autorité des Marchés Financiers (‘AMF’). The fund is managed by BNPP AM’s Private Assets business unit which, under the management of David Bouchoucha, has more than 100 professionals and assets under management and advisory in excess of €40bn as of October 2024.

- ENDS -
Footnotes^ [1] 20241128-ARKOLIA-Communique.pdf
^ [2] Sustainable Finance Disclosure Regulation
^ [3] Environmental, Social and Governance