EIF signs €150 million cornerstone commitment to White Summit Capital Decarbonisation Infrastructure Fund II, backed by the InvestEU programme
EIF signs €150 million to WDIF II
EIF signs €150 million cornerstone commitment to White Summit Capital Decarbonisation Infrastructure Fund II, backed by the InvestEU programme
- The Fund supported by EIF has a target size of €500 million
- It will contribute to decarbonisation, renewable energy production and security of energy supply
- The agreement is backed by the InvestEU programme, which aims to trigger more than €372 billion in additional investment over the period 2021-27.
The European Investment Fund (EIF) has signed a €150 million cornerstone commitment to the White Summit Capital Decarbonisation Infrastructure Fund II (WDIF II).
The project is backed by the InvestEU programme, which aims to mobilise over €372 billion in additional investment for EU policy priorities over the period 2021-2027.
EIF's significant commitment to the Fund reflects the important contribution WDIF II is expected to make towards advancing the EU's objectives. These include the transition to clean energy, addressing the consequences of climate change, and ensuring security of energy supply, among others.
WDIF II, which has a target size of €500 million, will help address the funding gap in the energy transition middle market by supporting infrastructure companies across Europe to scale up their asset base and support their development.
Marjut Falkstedt, EIF Chief Executive said: “"In line with our objective of accelerating Europe's energy transition, we are excited to join forces with White Summit Capital. By leveraging the expertise and financial strength of the EIF and with the support of the InvestEU programme, alongside White Summit Capital we aspire to mobilise additional capital, expedite decarbonization efforts, and contribute to building a sustainable future.”
European Commissioner for Economy, Paolo Gentiloni, said: “I am glad that together with the EIF, under InvestEU, we are supporting this fund giving the financial boost that businesses need to contribute to our decarbonisation efforts. It will not only help infrastructure companies to make the necessary investments in renewable energy and energy security, but also bring clear returns in terms of high-quality jobs and sustainable growth for Europe.”
Pablo Pallas, Managing Partner, White Summit Capital, stated : “We are delighted to partner with the EIF as we share many of the same objectives, including the belief that supporting smaller infrastructure companies operating in more complex energy sub-sectors is one of the keys to energy transition. Moreover, we hope that, together, we can unlock further capital deployment opportunities for the EIF's partner organisations, such as the European Investment Bank and InvestEU, in order to accelerate Europe's decarbonisation”
The Fund will invest in approximately 10 companies with strong management teams, in three key areas where White Summit Capital has a proven track record: (1) Renewables Integration, (2) Sustainable Transportation and (3) Decarbonisation of Industries. These investments will draw upon the White Summit Capital team's unique combination of investing, greenfield, industrial, and energy management expertise.
White Summit Capital expects the investments made by WDIF II to comprise an initial acquisition, followed by further capital deployment through growth or development.
The challenges facing the energy transition infrastructure sectors make the need for access to financing even more evident, and the investments to be mobilised by White Summit's Fund will seek to address this need.
The Fund's seed asset, a significant stake in Zunder, has already been contributed. Zunder is one of the leading independent Electric Vehicle Charging Infrastructure companies in Southern Europe and counts Mirova, the French infrastructure manager, as a shareholder.
WDIF II is classified as an Article 9 fund under the Sustainable Finance Disclosure Regulation and has linked 20% of its performance incentives to achieving decarbonisation objectives.
White Summit Capital expects WDIF II to reach a first close by the first quarter of 2024.
Background information
The European Investment Fund(EIF) is part of the European Investment Bank Group. Its central mission is to support Europe's micro, small and medium-sized enterprises (SMEs) by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, the EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth and employment.
White Summit Capital is a specialised energy transition infrastructure investment manager. Founded in 2011, WSC has deployed over €2 billion in infrastructure investments and generated realised returns of over 35% IRR and 2x CoC1[1]. The firm has a diverse multi-disciplinary team of 27 employees across 4 offices in Zug, London, Madrid and Bilbao.
The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for EU policy priorities like the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme has three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the projects of the implementing partners, increasing their risk-bearing capacity and thus mobilising at least €372 billion in additional investment.
