Banca March strengthens its sustainable co-investment strategy and launches March Energy Transition in collaboration with Tikehau Capital
21 November 2023 Category: Products
- This new co-investment product from Banca March is the second collaboration with Tikehau Capital in its Private Equity strategy focused on decarbonising the economy. With this strategy, launched in 2018, Tikehau Capital has raised 1.4 billion euros through an initial fund, building a portfolio of 14 investments in European companies1.
- Banca March is committing a minimum amount of 80 million euros to its customers in this second fund dedicated to strategy.
- The investments of this second fund, with horizons of 4 to 7 years, will make it possible to build up a portfolio of some 20 unlisted European companies involved in decarbonisation of fossil fuel-intensive sectors, with the aim of fostering their transition to more affordable, efficient and sustainable energy, both in terms of production and consumption.
- Banca March reaffirms its commitment to sustainability and the carbon neutrality targets set out in the European Union's Green Deal.
Banca March launches March Energy Transition, a new sustainable co-investment product that marks the second collaboration in the Private Equity decarbonisation strategy from global alternative asset manager Tikehau Capital, pledging a minimum of 80 million euros to its co-investor clients. This strategy is dedicated to supporting the growth of companies that develop solutions to improve energy efficiency, increase the supply of renewable energy and expand low-carbon mobility.
Launched in 2018, Tikehau Capital's strategy was pioneering, not only at the European level, but also globally. The first fund raised 1.4 billion euros and invested in 14 European companies, making it one of the largest private equity funds dedicated exclusively to boosting the growth of companies that are at the forefront of the decarbonisation of the European economy. The investments made by March Energy Transition, Banca March's new initiative which forms part of this decarbonisation strategy, seek to reduce the carbon footprint of the European economy as it adapts to climate risk. It also includes the possibility of strategically investing up to 15% in North American companies.
March Energy Transition plans to build a portfolio of around 20 unlisted companies over a 5-year investment period. It will invest in equity of mainly European companies actively engaged in the decarbonisation process in fossil fuel-intensive sectors, specifically energy production, industry, transport and construction. These investments will have a time horizon of 4 to 7 years.
The launch of this new co-investment product highlights Banca March's commitment to alignment with the sustainability and carbon neutrality goals set by the European Union's Green Deal. Over recent years, Banca March has rolled out several innovative, alternative investment and financing solutions that combine sustainability and performance.
Ignacio Montero, Director of the Co-Investment Unit at Banca March: "The energy sector is undergoing a profound transformation in search of a more affordable, efficient and sustainable energy supply, meeting a changing and multi-faceted demand. At Banca March, we want to build on the industry's growth potential to meet our customers' growing demand for products and services that prioritise sustainability and decarbonisation."
Carmen Alonso, Head of Iberia and the United Kingdom at Tikehau Capital: "At Tikehau Capital, we strongly believe that investors have a responsibility to support companies in their transition to a more sustainable business model. Having established ourselves as one of the leaders in the field of energy impact and transition, we are delighted to enhance our portfolio with the launch of this new initiative with Banca March, our long-term partner. Together, we are committed to accelerating progress towards the goal of net carbon neutrality."
Global asset management firm Tikehau Capital was founded in 2004. It has teams in 15 countries and more than 42 billion in assets under management (as at 30 September 2023). Tikehau Capital is a key player in the development of the European ecosystem for the energy transition and decarbonisation of the economy.
Co-investment, a hallmark of Banca March
Co-investment is a hallmark and the utmost expression of the Banca March Group's commitment to its customers, inviting them to participate as partners in the same investment vehicles or projects the bank invests in. Following this philosophy of aligning interests, over the years, the family bank has co-invested with more than 9,000 customers through its institutional SICAVs (Torrenova, Lluc and Bellver) – liquid co-investment vehicles that at the end of August 2023 had a total volume under management of 1.839 billion euros. In the unlisted co-investment category, since 2008 the Banca March Group has invested more than 2.65 billion euros in illiquid assets with its more than 1,750 co-investors.
[1] Including co-investment vehicles. September 2023.
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