The European Commission-backed public-private partnership investment vehicle has appointed SUSI as its portfolio manager as it focuses on the transition to a low carbon future.
The European Energy Efficiency Fund (EEEF) has appointed SUSI Partners as its portfolio manager to oversee its energy transition infrastructure investments.
In addition to the SUSI appointment, the European Commission-backed EEEF has selected Alter Domus Management as its alternative investment fund manager.
Currently, the EEEF, a public-private partnership investment vehicle dedicated to funding public energy-efficiency projects across the EU, holds 16 active investments across 10 countries, representing €170m of invested capital.
The fund invests in projects with a defensive risk profile and aims to attract additional capital from institutional investors.
Speaking to Impact Investor about its investment strategy going forward, SUSI said that as the existing investment mandate of the fund remains unchanged, it will continue to focus on public-sector projects in the areas of energy efficiency, renewable energy, and clean urban transport.
“We will bring in our extensive experience, established partner network, and our partnership-focused approach, which is built on long-term framework agreements with leading energy service companies across Europe, to significantly accelerate the fund’s deployment efforts.”
The firm said that, in addition to deployment, its initial focus will be on taking over the management of existing investments. “We apply a proactive risk and stakeholder management approach, which will be key to protecting value for fund investors,” SUSI added.
The portfolio holds technologies like LED street lighting, efficient heating, ventilation, and air conditioning (HVAC) systems, electrified transportation, building retrofits and distributed solar generation.
Speaking about the appointment, Giorgio Chiarion Casoni, director for investment in DG internal market, industry, entrepreneurship and SMEs at the European Commission, said: “The EEEF plays a vital role in helping European cities and communities transition to a low-carbon future. We welcome the appointment of SUSI Partners as the portfolio manager of the fund and are confident that their specialised expertise and strong track record are perfectly suited to achieving the fund’s objectives for the benefit of all stakeholders.”
Energy transition
Earlier this year, British International Investment (BII), the UK’s development finance institution and FMO, the Dutch entrepreneurial development bank, joined hands with SUSI Partners to launch a new renewable energy platform, Sustainable Asia Renewable Assets from scratch, as reported by Impact Investor.
Speaking to Impact Investor about the current challenges for deploying capital in public-sector energy efficiency projects, SUSI said: “Given the substantial financing gap that exists to meet the ambitious targets set out in the European Green Deal for 2030 and 2050, especially with regard to energy efficiency targets, the European Commission has emphasised the role of public entities as leaders in reducing energy consumption across their activities and buildings.
“This is reinforced by the Energy Efficiency Directive, which mandates public entities to reduce energy consumption by 3% annually, creating ample opportunity for energy efficiency investments,” SUSI added.
Alexander Hunzinger, co-CIO at SUSI Partners, said: “With over a decade of experience in credit-financing efficiency improvements to existing infrastructure and other energy transition applications, we are ideally positioned to ensure a seamless transition in the management of EEEF.”
SUSI has operated for over 15 years with a focus on mid-market energy transition infrastructure investments, having launched its first credit vehicle in 2014.
The Swiss-based firm has since invested €700m into energy efficiency and other energy transition-related projects through its credit strategy.
