The investment case is offered by the fundamental transformation needs in existing infrastructure systems to address global climate change, a transition made possible by declining technology costs, new business models, and growing consumer demand.
We aim to build a broad portfolio of sustainable and low-carbon climate investments in partnership with premier infrastructure fund managers: our Climate Infrastructure Fund will invest in funds, acquire secondary stakes in such funds or vehicles and pursue co-investments alongside fund and industrial partners.
Structured as a defensive strategy, the fund grants access to opportunities in the climate infrastructure space and provides a strong yield component. Expected net IRR is in the 7-9% range with annual cash yields at 3-5%.
The fund will be diversified across managers, vintage years, sectors, investment types, and regions
The Sustainable Finance Disclosure Regulation (“SFDR”) applied from 10 March 2021. The SFDR requires financial market participants such as Patrimonium to provide information to investors with regards to the integration of sustainability risks, the consideration of adverse sustainable impacts, the promotion of environmental or social characteristics, and sustainable investment.
Sustainable Investment Objective
The Patrimonium Climate Infrastructure Opportunity Fund aims to fulfill a sustainable investment objective by contributing positively to climate change mitigation and adaptation in line with the Paris Agreement.
We target key segments of climate infrastructure, including renewable energy, energy infrastructure and storage, energy efficiency, sustainable transportation, and social infrastructure, for which there is strong global demand. Climate infrastructure not only enables sound economic development, job creation, and the purchase of local goods and services, but also improves the quality of life for citizens, helps protect our vital natural resources and the environment, and promotes more effective and efficient use of financial resources.
Proprietary ESG and Sustainability Framework
We have created a proprietary ESG and Sustainability Framework, which is designed to review a specific set of sustainable investment matters, assess sustainability risk, and provide transparency to clients. By applying the ESG and Sustainability framework, we follow a 3-step approach:
All ESG and Sustainability ratings of the underlying investments in the Partnership are pooled to give an aggregated rating, which is published annually in the investor Sustainability report, along with the scoring for each underlying investment.