Schroders to Buy Majority Stake in Greencoat Capital

Posted on 12/21/2021

Asset management giant Schroders plc reached agreement to acquire a 75% shareholding in Greencoat Capital Holdings Limited (Greencoat) for an initial consideration of £358 million. Greencoat is one of Europe’s largest renewable infrastructure managers, with £6.7 billion of assets under management at November 30, 2021. The deal includes a potential earn out, payable three years after completion, which is subject to stretch revenue targets, the continued employment of the senior management team in the Greencoat business and is capped at £120 million. The purchase price will be settled in cash. A series of options, exercisable by Schroders or the Greencoat management shareholders, are in place for Schroders to acquire the remaining 25% shareholding over time at a price based on a fair market valuation at the time of the option exercise. The structure of the option arrangements is designed to ensure maximum stability and alignment between the four founders and Schroders.

Established in 2009, Greencoat is a specialist investment manager focussing on renewable energy infrastructure investing, including wind, solar, bioenergy and heat. Greencoat operates nearly 200 power generation assets across the U.K., Europe and the U.S., with an aggregate net generation capacity of over 3 gigawatts. Greencoat’s investor mandates typically comprise permanent or 25-year capital, reflecting the longevity of the assets in which it invests. It manages the listed renewable infrastructure investment companies in sterling (Greencoat UK Wind PLC) and euros (Greencoat Renewables PLC) and has some of the U.K.’s leading pension funds amongst its fast growing £2.9 billion private market business.

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