European private equity major Eurazeo has raised €200m, more than half of the target fund size, for its Sustainable Maritime Infrastructure Fund.
ESMI has received a cornerstone investment of €70m from the European Investment Fund.
ESMI supports the transition of the global maritime industry to a carbon-neutral economy by 2050. The firm said the capital collected will be invested in three areas including vessels equipped with environmentally friendly technology that use more efficient or alternative fuels; innovative port equipment and infrastructure to aid ecological transition, as well as assets that support the development of offshore renewable energies.
Alain Godard, chief executive at EIF, said, “Our cooperation with Eurazeo, with the support of EFSI, demonstrates Europe’s strong commitment to improving access to finance for small and medium sized businesses in Europe.
“Given the EU Green Deal and sustainability focus of the Multiannual Financial Framework, this transaction provides support to an alternative lender in the context of the EU’s green transition.”
The fund has made its first investment to finance a jack-up vessel used for the construction, repair and maintenance of European offshore windfarms.
The firm said it is the first of a series of transactions to invest in about 50 European businesses operating small/medium sized vessels, with a target size of €350m.
Sylvain Makaya, partner at Eurazeo, said, “At a time when we need to at least halve emissions by 2030 to hope limit global warming to 1.5°C (2.7°F), we are committed to being an active contributor to the
solution by deploying meaningful funds like ESMI that provide a response to the environmental and climatic issues.”
Eurazeo launched ESMI in April last year targeting up to €300m.
The fund will be managed by Idinvest Partners. Eurazeo gained control of European private equity investor Idinvest in 2018 by buying 80% of the business, and last September agreed a deal to buy up the rest of the firm in successive stages by 2022.
The firm held a second close for its Smart City II fund on €150m in January.
It raised two €1bn-plus fund in a week in July, closing its Idinvest Private Debt V on €1.5bn and €1.6bn for its growth strategy targeting equity investments in European tech companies.
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