Corporate news

Encavis Asset Management and BayernLB launch the VAG alternative investment fund dedicated to Renewable Energy with BayernInvest

The third mutual fund for institutional investors is designed especially for insurance companies, retirement funds and pension funds.

Neubiberg/Munich, November 16^th, 2022 – Encouraged by the success of their previous investment funds, Encavis Asset Management (Encavis AM) and BayernLB recently launched an additional investment opportunity for the growth market revolving around Renewable Energy: the Encavis Infrastructure Fund V (EIF V). In contrast to its sister fund EIF IV, which caters exclusively to banks, the new fund is directed at insurance companies, pension funds and retirement funds. Seed funding totalling 50 million euros was provided by OMP Capital, a provider of bespoke credit financing to the energy transition in Europe. OMP is majority owned by the well-known Nordic private equity investor HitecVision, a market leader in its field.

The fund acquires assets that produce, convert and store energy from renewable sources. Its highly diversified portfolio focuses on a wide range of technology in wind farms and solar parks. Across Europe, EIF V also plans to invest in related technology such as battery storage and possibly also power-to-gas solutions. The aim is to establish a future-proof portfolio of assets that will supply European markets with green energy on a sustainable basis. Initially, the plan is to grow the fund to 600 million euros, with the option of stocking up to 1.2 billion euros by investing equity. The stable, long-term revenues that can be achieved from the independent supply of green energy should enable the fund to yield highly attractive annual returns of 6-8% over the next 25 years.

‘Given the ongoing high demand amongst institutional investors for sustainable investment opportunities, particularly in the field of Renewable Energy, we’re confident that this fund will be filled rapidly’, predicts Karsten Mieth, CEO of Encavis Asset Management AG.

Encavis AM will be responsible for selecting, auditing and operating the wind farms and solar parks. Acting as AIFM, BayernInvest Luxembourg S.A. will oversee the management of the fund and pursue a strict sustainable investment strategy with the relevant ESG classification in accordance with Article 9 of the SFDR (European Union Sustainable Finance Disclosure Regulation). BayernLB will be responsible for soliciting and supporting investors.

About Encavis Asset Management AG:

Encavis Asset Management AG provides institutional investors with tailored portfolios and fund solutions in the growth market revolving around renewable energy. Having invested in this area with great success since 2006, the company caters to the entire value chain from asset sourcing through to the operative management of the assets it acquires.

Encavis Asset Management AG is a 100% subsidiary of the MDAX-listed Encavis AG (Prime Standard; ISIN: DE0006095003, ticker symbol: ECV) and, as part of the corporate family, benefits from the longstanding experience and industry network of the Encavis Group.

Encavis AG is a leading, listed IPP (independent power producer) that focuses on renewable energy in Europe. The company acquires and operates solar parks and (onshore) wind farms in Germany and other European countries. Plants belonging to the Encavis Group currently generate around 3.4 gigawatts (GW), which equates to more ethan 1.4 million tonnes fewer carbon emissions per year.

Encavis is a signatory of the UN Global Compact and a member of the UN PRI network. The Encavis Group has received awards from two globally leading ESG research and rating agencies for its achievements and performance in the field of ESG (environmental, social and corporate governance). Their sustainability performance was rated ‘A’ by MSCI ESG Ratings, while ISS ESG – another internationally renowned agency – awarded Encavis ‘Prime’ status.

For more information on the company, please see www.encavis-am.com

About BayernLB:

BayernLB is a specialised bank that provides important financial backing to Bavarian and German businesses. It is dedicated to progress. Committed to a sustainable business strategy, the bank’s customer base is made up of companies, building societies, institutional investors and public authorities.

Most of the businesses that bank with BayernLB are involved in high-tech fields such as mobility, energy, technology, construction and raw materials, mechanical engineering and plant engineering. The bank focuses on helping companies in these sectors to successfully grow and develop their business models. As a real estate financer, the bank offers holistic expertise and support along the entire real estate value chain, as well as in numerous asset classes. BayernLB is the central bank for savings banks in Bavaria and has served for many decades as a tried and trusted partner for savings banks within the federal state and also across Germany. Its subsidiary DKB is a tech bank offering more than 4.5 million customers an exceptional customer experience and outstanding digital solutions. BayernLB is owned by the Free State of Bavaria and the Association of Bavarian Savings Banks.

About BayernInvest Luxembourg S.A.:   

As an asset management company with a focus on sustainable investment strategies, BayernInvest offers both institutional and private investors tailor-made, innovative investment and risk management concepts, professional fund management and market-leading sustainability reporting. With BayernInvest Luxembourg S.A.’s alternative investment platform, the company can execute even complex investment strategies in the alternative asset classes segment, tailored to each customer’s specific needs. Founded in 1989, BayernInvest is responsible for administering investment funds with a total value of €100 billion. The wholly owned subsidiary of BayernLB has regional roots and monitors international market developments at all times.          

Contacts for media enquiries

Encavis AG       
Tanja Van den Wouwer   
Head of Sustainability & Communications   
Phone +49 89 44230 6025
tanja.van_den_wouwer@encavis.com  

BayernLB
Andreas Zimniok
Head of Communication
Phone +49 89 2171 21306
andreas.zimniok@bayernlb.de 

BayernInvest  
Ralf Rosenbaum
Spokesman of the Management Board
Phone +352 28262440
Ralf.Rosenbaum@bayerninvest.lu

Contact for investment fund marketing

BayernLB – Team Alternative Investments

Herbert Schädler
Senior Director – Alternative Investments
Phone +49 89 2171-25371
herbert.schaedler@bayernlb.de

Zeljko Pantic
Department Director – Alternative Investments
Phone +49 89 2171-29207
zeljko.pantic@bayernlb.de

Thomas Seel
Department Director – Alternative Investments
Phone +49 89 2171-25165
thomas.seel@bayernlb.de