ISIF invests €68m in decarbonisation

The Ireland Strategic Investment Fund has invested €68m across two decarbonisation funds managed by Energy Impact Partners.

Institution: Ireland Strategic Investment Fund
Headquarters: Dublin, Ireland
AUM: €9.0 billion
Bitesize: €10 million-€50 million

The Ireland Strategic Investment Fund (ISIF), part of the National Treasury Management Agency (NTMA), is investing €68 million in two leading international decarbonisation funds, according to a press release from the Irish sovereign wealth fund.

Both funds are managed by Energy Impact Partners, a New York-headquartered private equity firm that specialises in providing debt and equity services to growth-oriented and mid-market energy companies across the US, investing in the transition to a net-zero carbon economy.

ISIF is committing capital across two of EIP’s funds, the European Fund at €34 million, which primarily focuses on growth equity and late-stage investments; and the Deep Decarbonisation Frontier Fund at €34 million, which focuses on investing in revolutionary early-stage companies that have the potential to fully decarbonise the global economy.

According to Private Equity International data, EIP Europe Fund closed on €390 million in September 2022. It had attracted investment from various institutional investors around the world, such as the Abu Dhabi Investment Authority, the SWF on behalf of the Government of Abu Dhabi, and APG Asset Management, a leading European public pension fund with more than €580 billion in assets under management.

EIP’s Deep Decarbonization Frontier Fund closed oversubscribed at $485 million in November 2022. The vehicle has a diverse LP base comprised of corporates, banks, SWFs, family offices, high-net-worth individuals and foundations from North America, Asia and Europe.

Investment into these funds aligns with ISIF’s €1 billion five-year climate action investment programme. It seeks to direct more international capital to the Irish decarbonisation sector and help international businesses establish a presence in Ireland, as well as to provide and develop partnerships with best-in-class investors and networks, enhancing access to opportunities to position Ireland to deliver on the above Climate Action Plan.

Through ISIF’s investment, EIP plans to invest in emerging Ireland-based decarbonisation and energy technology companies, also establishing an office in Dublin.

Target segments will include energy supply decarbonisation (eg, hydrogen), the electrification of industrial processes and tech-enabled infrastructure (eg, distributed energy generation).

As illustrated below, The Ireland Strategic Investment Fund’s recent private equity commitments have tended to focus on growth equity strategies that invest across Europe, specifically Irish-focused investment.

Platinum subscribers may click here for the investor’s full profile, including key contacts, allocation strategy and fund investments.