The renewable energy infrastructure landscape is evolving rapidly, as are asset managers’ strategies, according to a white paper released by bfinance, which illustrates key developments, including case studies of recent manager searches.
Appetite for renewable energy infrastructure among asset owners has been extremely strong, buoyed by ESG agendas as well as broader demand for infrastructure as an asset class. Pricing pressure has increased: an increasingly numerous group of fund managers (65 fundraising at last count) and direct investors are vying for deals, while large oil and gas firms are also bidding for assets with a view to offsetting their large carbon footprints — often with a substantially lower cost of capital.
Asset managers’ strategies have therefore evolved rapidly, with substantial changes taking place since bfinance last published commentary on the sector in 2019. At that time, it was already evident that subsidies were in decline and this asse