BNP Paribas Asset Management (BNPP AM) announced the launch of the BNP Paribas Low Carbon Transition Infra Equity Fund I, a new fund targeting investments in infrastructure projects across clean energy, sustainable mobility and circular economy-focused projects.

The new fund, which is supported by €400 million in anchor commitments by BNP Paribas Group, seeks to raise €750 million from institutional investors such as insurers, pensions funds and corporates.

The announcement follows the appointment by BNP AM last year of Rodolphe Brumm as Head of Infrastructure Private Equity, to lead the new strategy which would invest in low-carbon infrastructure projects in Europe through the acquisition of minority stakes in companies in energy transition-related areas, such as the development of renewable energy projects, transport decarbonization, circular economy and carbon capture.

Brumm said:

“We are thrilled to launch our first infrastructure private equity fund, a testament to the growing client demand for this asset class and the pressing need for low carbon investments. Backed by €400m anchor commitments illustrating the strong support of the BNP Paribas Group, this initiative underscores our central role in financing the energy transition. With two deals already completed – solar PV projects in Europe – we are proud to create value for our investors while contributing to building a more sustainable future.”

The new fund seeks to build a portfolio of between eight and 12 investments through direct minority participation in capital-intensive infrastructure projects with a mid-market value. It will invest exclusively in European countries, supporting energy transition projects by focusing on clean energy, sustainable mobility and circular economy, including new sectors such as batteries, hydrogen and carbon capture.

The fund has already made two investments in 2024. In July, it acquired a minority stake in Absolute Energy, a renewables developer in Italy aiming to build a 3.0-gigawatt pipeline of solar photovoltaic, wind and storage projects. In November, the fund acquired a co-controlling stake alongside Mirova in Arkolia, one of the largest companies focusing on independent rooftop photovoltaics on the French market.

Karen Azoulay, Head of Real Assets at BNP Paribas Asset Management, said:

“We are delighted to expand our established infrastructure franchise with the launch of BNP Paribas Low Carbon Transition Infra Equity Fund I. Since 2018, we have successfully invested in more than 80 infrastructure transactions, demonstrating the strength of our approach and the expertise of our seasoned investment team. With a proven track record in low carbon solutions, the support of the BNP Paribas Group, and the strong client interest in this space, we are confident in achieving a successful fundraising for this major milestone in our development.”