Schroders has bought a majority stake in Greencoat Capital for £358m.
The deal saw Schroders take a 75 per cent shareholding and will have £6.7bn assets under management brought to the firm.
Greencoat is a renewable infrastructure manager in Europe and the two firms said they have an ambition to be a global leader in this investment sector.
Peter Harrison, group chief executive of Schroders, said: “We are pleased to welcome the Greencoat team to Schroders.
“Its culture is an excellent fit with ours and Greencoat’s focus aligns very closely to our strategy, continuing our approach of adding capabilities in the most attractive growth segments we can provide to our clients.”
He added: “We have demonstrated our ability to integrate acquisitions successfully, to generate growth and create significant value for our shareholders. We are confident that we will be able to leverage the strengths of both firms while preserving Greencoat’s differentiated position in the market.”
Greencoat will become part of Schroders’ private markets division - Schroders Capital - and will be known as Schroders Greencoat.
Schroders said the purchase aligned with its green strategy and intention to build a private assets platform.
The firm said providing private capital for the energy transition would become increasingly important as governments around the world look to accelerate towards this goal.
“This is an area where we can support one of the most significant transformations required in economies worldwide to mitigate climate change,” it said. “In addition, there is strong investor demand for such long-duration assets providing long-term secure income streams.”
Schroders said the US and European market for renewable energy assets was forecast to grow by more than $1trn to 2030.
Established in 2009, Greencoat is a specialist investment manager focussing on renewable energy infrastructure investing, including wind, solar, bioenergy and heat.
Richard Nourse, founder of Greencoat, said: “We are all delighted to have found a partner in Schroders who sees the potential of our business and believes deeply in our mission to build a global leader in renewables investing.
“Combining this team with Schroders’ global distribution network and expertise will enable clients to capitalise on the unequalled opportunity that our sector represents - a trillion dollar investable universe - and the chance to meaningfully support the global transition to net zero.”
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