Global investment giant takes control of leading Irish wind farm backer

Schroders will not have a direct shareholding in Greencoat Renewables as part of the deal to buy a 75% stake in Greencoat Capital

Greencoat Renewables operates wind farms in Ireland, France and Finland, and has plans to expand further across continental Europe and the Nordic region.

A global asset management giant is set to take a majority stake in the investment management company behind Greencoat Renewables, one of the largest wind farm operators in Ireland.

Global investment manager Schroders has agreed to buy a 75% stake in Greencoat Capital – a UK-based funding and investment manager of renewable assets, which include Greencoat Renewables here, Greencoat UK Wind in Britain and assets in the US.  Schroders will pay an initial £358m (€420m) for the stake.

Schroders will not have a direct shareholding in Greencoat Renewables as part of the deal and it remains too early to know how the development will alter Greencoat Renewables’ funding capacity.

While not a major backer anymore, the Ireland Strategic Investment Fund (ISIF) still holds around a 1.8% stake in Greencoat Renewables, which operates wind farms in Ireland, France and Finland, and has plans to expand further across continental Europe and the Nordic region.

Greencoat Renewables has welcomed the deal, but said the transaction will not change its investment strategy nor its ownership structure. 

It said the working relationship and structure it has had in place with Greencoat Capital since floating on the stock exchange four years ago remains in place.

Greencoat Renewables raised €165m from an oversubscribed share placing in October – its second such fundraising effort in a year – with the money earmarked for expansion and debt reduction. Schroders said it and Greencoat Capital aim to be a global leader in the renewables investment sector. 

With the global transition to net zero, the US and European markets for renewable energy assets are forecast to grow by more than $1 trillion by 2030, with there being a fast-growing demand among institutional investors for environmentally positive products.