BNP Paribas has launched its inaugural private equity infrastructure fund, the BNP Paribas Low Carbon Transition Infra Equity Fund I, aiming to raise €750 million to fuel Europe’s transition to low-carbon energy. With a €400 million anchor commitment from the BNP Paribas Group, the fund is set to invest in high-impact, capital-intensive infrastructure projects designed to accelerate clean energy adoption, sustainable mobility, and circular economy practices across the continent.
Key Focus Areas:
The fund will target emerging sectors such as batteries, hydrogen, and carbon capture, while also investing in traditional clean energy initiatives like solar, wind, and energy storage. BNP Paribas Asset Management (BNPP AM) will leverage its extensive network and expertise, particularly from its Low Carbon Transition Group, to identify and support the most promising projects.
Early Success:
The fund has already secured two significant investments:
- Absolute Energy (Italy): A minority stake acquired in July 2024, which will help support a 3.0 GW pipeline of solar, wind, and energy storage projects.
- Arkolia (France): A co-controlling stake in November 2024, alongside Mirova, in the second-largest independent power producer in France, specializing in rooftop photovoltaic solutions.
These early investments underscore the fund’s commitment to building a diversified portfolio aimed at delivering both financial returns and environmental impact.
ESG Integration:
Reflecting BNP Paribas’s commitment to sustainability, the fund is classified under Article 8 of the EU Sustainable Finance Disclosure Regulation (SFDR), ensuring that it adheres to stringent environmental, social, and governance (ESG) criteria. This approach ensures that capital is directed towards projects that are crucial for achieving low-carbon goals.
Expertise and Leadership:
Karen Azoulay, Head of Real Assets at BNPP AM, expressed confidence in the fund’s success, citing strong client interest and a proven track record in low-carbon solutions. The fund is managed by David Bouchoucha, head of BNPP AM’s Private Assets unit, supported by a dedicated team overseeing over €40 billion in assets.
Long-Term Commitment:
Rodolphe Brumm, Head of Infrastructure Private Equity at BNPP AM, emphasized the dual objectives of the fund: creating value for investors while contributing to the creation of a more sustainable future. The launch of the fund is a significant step in BNP Paribas’s ongoing efforts to finance Europe’s energy transition and support a cleaner, more sustainable energy infrastructure.
References:
- BNP Paribas Asset Management Press Release on Low Carbon Transition Fund
- EU Sustainable Finance Disclosure Regulation (SFDR)
