Europe
Exposure to euro-denominated renewable energy assets in Europe through a listed vehicle and private market co-invest opportunitiesA leading European renewables infrastructure business
Schroders Greencoat’s investments in Europe are currently concentrated in Greencoat Renewables PLC (GRP), an owner and operator of euro-denominated renewable energy assets.
After building a leading position in Ireland, since 2020 GRP has expanded into continental Europe. The company benefits from access to a large pool of assets to seek attractive returns while at the same time diversifying portfolio exposure to local variations in renewable resource.
GRP invests in both wind and solar assets, aiming to provide investors with an annual dividend that progressively increases. It is the third largest renewable infrastructure company with a UK listing.
Schroders Greencoat's private market strategy is to deploy institutional capital alongside GRP into European renewable infrastructure, enabling the transition to Net Zero and contributing to the region's energy security.
Benefitting from opportunities across Europe
Greencoat Renewables’ portfolio consists of wind (onshore and offshore) and solar assets with a total installed capacity of over 1GW. It has access to a strong and diverse pipeline of opportunities across the continent, with a presence in Ireland, France, Germany, Finland, Spain and Sweden.
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Key Investment Risks
Volatility risk: The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested.
Liquidity risk: There may be very limited liquidity available via the secondary market of the proposed Fund given the underlying private credit assets and investors should consider an investment only if they intend to hold it for the life of the proposed Fund. Liquidity of the underlying investments might not be sufficient to meet investor subscription and redemption requirements.
Interest rate risk: A rise in interest rates generally causes bond prices to fall.
Credit risk of underlying issuers/lenders: A decline in the financial health of an issuer/lender can cause the value of its bonds/ loans to fall or become worthless.
Currency risk: The fund can be exposed to different currencies. Changes in foreign exchange rates could create losses.
Counterparty risk: The counterparty to a derivative or other contractual agreement or synthetic financial product could become unable to honour its commitments to the proposed fund, potentially creating a partial or total loss for the proposed fund.
Derivatives risk: A derivative may not perform as expected, and may create losses greater than the cost of the derivative.
Concentration risk: The proposed Fund may be concentrated in a limited number of geographical regions, industry sectors, markets and/or individual positions. This may result in large changes in the value of the fund, both up or down, which may adversely impact the performance of the fund.
Gearing risk: The proposed fund may borrow money to invest in further investments. Gearing will increase returns if the value of the investments purchased increase in value by more than the cost of borrowing, or reduce returns if they fail to do so.
Valuation risk: The underlying private credit assets may be subject to inadequate pricing reliability. In addition, property-based vehicles invest in real property, the value of which is generally a matter of a valuer’s opinion.
Industry/country risk: Legislative changes, changes in general economic conditions and increased competitive forces may affect the value of investments. Additional risks may include greater social and political uncertainty and instability and natural disasters.
Infrastructure asset risk: Infrastructure assets expose investors to additional risks, in particular construction risk (e.g. construction delays, cost overruns, etc.) and deployment risk (e.g. capital being deployed in several instalments during construction period rather than upfront for brownfield investments).