HgCapital seeks EIB support for €500m fund

The London-based private equity firm has approached the European Investment Bank (EIB) for €50m in financing for its second renewable energy fund, which is targeting €500m in total.

HgCapital has filed an application with the European Investment Bank (EIB) for up to €50 million of funding for its second renewable energy fund, which is aiming to raise €500 million, according to details published on the EIB website.

According to the description of the fund on the website, it is targeting the renewable energy sector – “primarily solar and wind” – in Europe. It also aims to contribute to the European Union aim of increasing electricity sources from renewable energy to 20 percent of the total by 2020.      

The EIB website says the proposal is currently under appraisal. HgCapital declined to make any comments related to the proposal.

This is the second renewable energy fund to be raised by HgCapital. The fund’s debut €300 million renewable energy fund was set up in 2006 and is among the largest European renewable energy funds.

HgCapital is a sector-focused private equity investor in the European mid-market with funds under management of £3 billion (€3.6 billion; $4.4 billion) on behalf of institutional and private investors from around the world.