BNP Paribas Asset Management (BNPP AM) has launched the BNP Paribas Low Carbon Transition Infra Equity Fund I, a €750 million ($792 million) fund aimed at institutional investors, including insurers, pension funds, and corporates. The initiative has already secured €400 million in anchor commitments from the BNP Paribas Group, underscoring its backing for energy transition projects across Europe.
The fund seeks to create a diversified portfolio of 8 to 12 equity investments in mid-market capital-intensive infrastructure projects, targeting Core+ and Value-Add assets. Investments will focus on clean energy, sustainable mobility, and circular economy solutions, including emerging sectors such as batteries, hydrogen, and carbon capture. The fund will leverage extensive network and expertise of BNP Paribas, including the capabilities of its Low Carbon Transition Group.
Two investments have already been made in 2024 from the fund. In July, the fund acquired a minority stake in Absolute Energy, an Italian renewables developer backed by I Squared, which is advancing a 3-gigawatt pipeline of solar, wind, and storage projects. In November, it secured a co-controlling stake alongside Mirova in Arkolia, France’s second-largest independent power producer (IPP) in the rooftop photovoltaic sector.
Rodolphe Brumm, Head of Infrastructure Private Equity at BNPP AM, expressed enthusiasm for the fund’s launch and said, “This initiative reflects the growing demand for low-carbon investments and the critical need for infrastructure supporting the energy transition. Backed by €400 million in anchor commitments, we are excited to deliver value for investors while fostering a sustainable future.”
Karen Azoulay, Head of Real Assets at BNPP AM said, “Since 2018, we’ve successfully completed over 80 infrastructure transactions. This new fund is a major milestone, and with strong client interest and support from BNP Paribas, we are confident in achieving our fundraising targets.” The fund’s launch cements BNP Paribas Asset Management’s central role in financing Europe’s energy transition, positioning it as a leader in low-carbon infrastructure investments.
