United Bankers Unveils Renewable Energy Fund
United Bankers (UB) is set to expand its fund offerings with the launch of a groundbreaking fund that focuses on investing in renewable energy development projects and power plants.
The eagerly anticipated UB Renewable Energy Fund (AIF) is scheduled to open for subscriptions on August 31, 2023.
The primary investment targets of UB Renewable Energy are wind and solar power plants. Additionally, the fund has the flexibility to invest in energy production infrastructure, energy storage facilities, and projects related to the burgeoning hydrogen industry.
Notably, the fund holds Article 9 status under SFDR, reflecting its commitment to sustainable investments with a specific focus on climate objectives. Geographically, UB Renewable Energy is positioned to make investments across Europe, with a special emphasis on Finland as well as other Nordic and Baltic countries. The fund's alternative investment fund manager, UB Fund Management Company Ltd., is an integral part of the esteemed United Bankers Group.
The launch of UB Renewable Energy comes at a critical juncture in the fight against climate change, as accelerating the electrification of societies remains a key strategy.
Renewable energy sources are expected to dominate the future energy landscape, and the demand for clean energy is projected to witness significant growth in the upcoming years and decades.
The fund's success hinges on capitalising on the evolving market dynamics of the energy and green transitions. Moreover, it presents a remarkable opportunity for investors to bolster the sustainable portion of their investment portfolios. UB Renewable Energy caters to both private and institutional investors alike.
A distinctive advantage that sets UB Renewable Energy apart is its strategic collaboration with other United Bankers funds. By leveraging partnerships with the timberland funds, the fund can execute development projects on the land owned by these funds.
This cooperation expedites the acquisition of land required for wind farms and solar plants, accelerating the development process and enhancing the fund's overall value and electricity sales.
Additionally, prospective partnerships with United Bankers' real estate funds present the potential to install solar power plants on the roofs of these properties, effectively enhancing energy efficiency and rental yields.
United Bankers' timberland funds boast a substantial forest land portfolio of over 160,000 hectares in Finland and the Baltic countries. Within these lands, approximately twenty promising wind farm projects have already been identified, with a combined potential capacity exceeding one thousand megawatts, as Tapio Nuotio, the fund's Portfolio Manager, highlights.
The management of UB Renewable Energy Fund is entrusted to a seasoned team of experts with extensive backgrounds in project development, finance, and the energy sector. Portfolio managers Staffan Söderholm and Tapio Nuotio, along with Senior Advisor Heikki Kauppinen, constitute the capable team responsible for overseeing the fund's portfolio and investment activities.
United Bankers' strategic focus on alternative investments, aimed at improving portfolio diversification and risk/return ratios, aligns perfectly with the addition of UB Renewable Energy Fund to their product lineup.
Investments in renewable energy offer a low correlation with traditional equity and fixed income assets, making them an attractive option for investors seeking both financial and environmental returns.
John Ojanperä, CEO of UB Fund Management Company, anticipates significant interest and growth potential for the fund, given the current prevailing environment.
Inclusion of UB Renewable Energy further bolsters United Bankers' comprehensive fund selection that emphasises real asset investments. Their asset under management reached approximately EUR 4.4 billion by the end of 2022, with 42 per cent of it dedicated to real asset investments, including real estate and forest funds, as well as funds investing in real estate and infrastructure companies.
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Source: United Bankers
