BNPP AM, BNP Paribas’s asset management arm, has announced a new investment fund: BNP Paribas Low Carbon Transition Infra Equity Fund I, a dedicated infrastructure investment platform supporting projects related to global transition to low carbon. Initially anchored by an investment from the BNP Paribas Group for €400 million, the fund plans to increase the commitment up to €750 million with the support of institutional investors in the forms of insurers, pension funds, and corporate clients. This new initiative targets investments in clean energy, sustainable mobility, and circular economy projects-a big step in BNPP AM’s continued commitment to sustainability.
The new fund will primarily focus on European infrastructure projects that contribute to the energy transition, with investments directed towards sectors such as renewable energy, transport decarbonization, and circular economy. These sectors include emerging areas like battery storage, hydrogen, and carbon capture technologies. BNP Paribas AM sees this as an opportunity to meet the growing demand for low-carbon investments, while also generating attractive returns for its investors.
The strategy is being spearheaded by Rodolphe Brumm, who was appointed last year as the Head of Infrastructure Private Equity at BNP Paribas AM. According to Brumm, the launch of the fund is a response to growing client demand for infrastructure investments in the low-carbon space. He cited the strong support from BNP Paribas Group, with anchor commitments of €400 million. Brumm underlined that the fund is focused not only on financial returns but also on supporting a more sustainable future. The fund has closed two deals in 2024 already, both focused on solar energy. The first deal was closed in July when the fund acquired a minority stake in Absolute Energy, a developer of renewable energy projects in Italy. Absolute Energy is aiming to build a 3.0-gigawatt pipeline of solar, wind, and storage projects. In November, the fund made a co-controlling investment in Arkolia, a leading French company specializing in independent rooftop photovoltaic systems.
BNP Paribas AM’s new fund is expected to build a diversified portfolio of between eight and 12 investments, all through direct minority stakes in capital-intensive infrastructure projects with mid-market value. This strategy will help the fund contribute proactively to the development and scaling of projects critical for reaching carbon-neutrality targets. Karen Azoulay, head of real assets at BNP Paribas AM, said that the firm welcomes this new fund and wants to increase the franchise by expanding the infrastructure. She underlined the successful track record BNP Paribas AM had in the infrastructure space by closing more than 80 infrastructure transactions since 2018. Azoulay referred to the strong demand from clients and the BNP Paribas Group’s continued support as drivers of this fundraising initiative.
This launch forms part of the broader strategy adopted by BNP Paribas AM in integrating sustainability into its investment approach. The low-carbon investments align with growing demand for sustainable investment solutions and urgency in tackling climate change. With the support of experienced professionals, BNP Paribas AM is perfectly positioned to harness expertise in infrastructure investments, hence making meaningful contributions towards global energy transition.
The BNP Paribas Low Carbon Transition Infra Equity Fund I will thus have a huge role in financing low-carbon infrastructure projects across Europe, offering institutional investors the opportunity to participate in the transition of a sustainable and resilient economy.