Macquarie Asset Management (MAM) has initiated a significant restructuring of its renewable energy portfolio by selling six green energy companies into the newly established Macquarie Green Energy and Climate Opportunities Fund (MGECOF). This move transfers 16% of Macquarie's green energy assets into the open-ended fund, which will be financially backed by UniSuper and other major pension funds.
MGECOF is set to acquire the six companies involved in solar, wind, energy storage and carbon offset projects for an undisclosed sum. This strategic initiative is supported by a substantial investment from UniSuper, alongside contributions from UK pension funds such as LGPS Central and Border to Coast Pensions, and funding from Macquarie Group Ltd’s own balance sheet.
The seed assets for MGECOF were developed by Macquarie’s in-house green investments team since 2018 and include projects spread across the Americas, Asia-Pacific and Europe. UniSuper has committed up to US$400 million (A$620 million) to MGECOF, highlighting the fund's potential to drive significant green energy initiatives.
Accelerating net zero transition
The assets currently managed under MGECOF represent around 17 gigawatts of capacity in various stages of development, construction and operation, forming a crucial part of Macquarie’s reported 106 gigawatts of green energy assets. This strategic fund launch marks a significant step in Macquarie’s broader commitment to fostering sustainable energy solutions worldwide.
While 17 gigawatts is a relatively small, it makes up a material 16% of the 106 gigawatts of green energy assets in operation, under construction or in development that Macquarie’s MAM last disclosed as of March 2023.
“Over several years, we have worked closely with specialist teams and partners across our platform to create, acquire and grow a portfolio of companies and projects diversified across geographies, technologies, power markets and development stages,” MAM head of core renewables, at MAM Green Investments Edward Northam said.
“The portfolio seeks to accelerate the green transition through its extensive, high-quality development pipelines and operational projects that are well aligned to national targets and policies.”
Macquarie declined to disclose the size of the new fund; however, it is notable that Macquarie’s inaugural energy transition fund, the Macquarie Green Investment Group Energy Transition Solutions, successfully raised US$1.7 billion in its last funding round in October.
UniSuper chief investment officer John Pearce said: “This is an investment of scale and quality with a pipeline of opportunities helping to accelerate the transition to net zero.
“It will enable UniSuper to invest across technologies and geographies in projects that we believe will generate attractive long-term returns for our members.”
What’s in the portfolio?
The portfolio incorporated into MGECOF includes a diverse range of companies and projects: Macquarie's Blueleaf Energy, a Pan-Asian firm focusing on onshore wind, solar, and energy storage; Aula Energy, known for its wind, solar, and battery operations across Australia and New Zealand; and the US-based entities Treaty Oak Clean Energy and Galehead Development, which specialise in large-scale solar, wind, and energy storage projects.
Additionally, the fund encompasses Forliance, a German company dedicated to high-quality, nature-based carbon offsets and Outer Dowsing, an ambitious 1.5GW offshore wind farm project in the United Kingdom.