Fund of the year - private equity: Tikehau Capital's T2 Energy Transition Fund
Tikehau Capital's T2 Energy Transition Fund closed earlier this year at more than €1 billion ($1.2 billion), above its initial target, and will target investments in European small and medium-sized enterprises (SMEs) that directly help lower greenhouse gas emissions.
The fund has already committed €500 million across eight investments over the last 23 months. The investments were into companies focused on clean energy generation, low-carbon mobility, and energy efficiency across France, Spain, Italy, and Ireland and have avoided 1 million tonnes of CO2 being emitted globally. Investments have been made to energy efficiency companies Greenyellow, Groupe Rougnon and Crowley Carbon, renewable energy company Amarenco, biomass specialist Enso and electric vehicles engine parts supplier EuroGroup.
"We believe that it is our role as a responsible investor to direct global savings towards financing the real economy, providing vital support to companies seeking to contribute to a low-carbon economy," said Pierre Abadie, co-manager of Tikehau Capital's T2 Energy Transition Fund. "For the first time, this fund institutionalises climate investing but also aligns our investments with the International Energy Agency's net-zero roadmap which states that 80% of CO2 reduction required by 2030 will come from the massification of existing and proven technologies."
The T2 Energy Transition Fund was initially launched in 2018 with €100 million from Tikehau's own balance sheet. Investors in the fund include the European Investment Fund, Bpifrance, and the Teachers' Retirement System of the City of New York. Following the fund's success Tikehau has launched in April this year T2 North America Fund to target that market with the same strategy.