SWEN Capital Partners, a specialist in responsible investment for unlisted assets, has completed the interim closing of its infrastructure fund, SWEN Infra Multi-Select 4 (SIMS 4).
The fund stands at EUR255 million with participation from French and European investors, furthering SWEN’s ambition of supporting the transition to a low-carbon economy in Europe.
This statement of confidence from French and international investors demonstrates the preeminent standing of the infrastructure strategy SWEN Capital Partners has pursued for over ten years across both open and dedicated funds.
Building on the solid track record of previous vintages, the new fund takes another step forward as regards integration of ESG criteria. Meanwhile, SWEN Capital Partners is increasing the proportion of direct investments in its portfolio and seeks for this new programme to find a balance between direct investments and primary or secondary funds.
SIMS 4 presents a predominantly European investment programme covering a broad range of sectors including telecommunications, sustainable transport, health and education or energy infrastructure compatible with the necessary climate transition. With 7 investments already made, including 4 direct investments, SIMS 4 has capitalised on SWEN Capital Partners’ quality pipeline.
This new generation of the fund reflects SWEN Capital Partners’ determination to strengthen the process of placing ESG and climate issues at the heart of investment decisions. In a significant innovation, SWEN Infra Multi-Select 4 will integrate four specific “ESG markers,” derived from extensive in-house research. These are: respect for the environment, connection to regionally essential goods and services, diversity and fair sharing of value.
In keeping with SWEN’s Climate ambition, SIMS 4 has, from the outset, adopted the “Net Environmental Contribution” (NEC)[i] methodology, starting with its direct investments. Providing a true environmental footprint of investments based on a multi-criteria approach, NEC measures the alignment of a business activity company or project with the environmental and energy transition. A scientific method based on physical units, NEC addresses not only climate but also biodiversity, water, waste/resources and air quality. The methodology takes a life-cycle approach by considering all impacts along value chains. The result is a unique score on a universal scale from -100 per cent to +100 per cent, applicable to all business activities and all asset classes and suitable for aggregation in portfolios and indices. SWEN CP is always working to enhance its set of environmental and climate metrics (green share per the taxonomy, portfolio temperature, etc) to better address environmental issues through its investments and taking into account social challenges.
Investors will benefit from the expertise of an established team with more than 10 years of experience in infrastructure financing. Over the three previous vintages, the team has invested close to €900 million with a proven strategy that has delivered an average net IRR of over 10%[ii] to investors. SWEN Capital Partners will also leverage their ability to design bespoke investment programmes for investors and highlights the team’s demonstrated skill in delivering consistent returns commensurate with the level of risk carried by this asset class.
“The renewed vote of confidence from our investors is an honour for us, as is the arrival of new investors, particularly international investors. This latest generation of the fund is set to address major infrastructure financing needs in Europe and offers a chance to participate in the low-carbon transition of key assets in Europe and around the world,” says Jérôme Delmas, CEO of SWEN Capital Partners.
“In ten years, SWEN Capital Partners has established an unparalleled track record in infrastructure investment and ESG integration. Our ever-increasing integration of ESG criteria resonates particularly well with institutional investors wishing to combine returns with current issues such as fighting climate change and protect biodiversity,” adds Jean Philippe Richaud, Deputy CEO and CIO of SWEN’s Multi-Strategy business.
“The launch of SIMS 4 constitutes a milestone in this respect, with the inclusion of our 4 ESG markers: respect for the environment, connection to regionally essential goods and services, diversity and fair sharing of value, these are the cardinal points that orient our investments, meeting investors’ ever-increasing requirements in terms of Responsible Investment,” says Thibault Richon, Head of SWEN’s Multi-Strategy Infrastructure team.