Schroders has confirmed this morning that it will buy a majority stake in Greencoat Capital, for £358m.
The deal, rumoured to be underway last week, will see £6.7bn assets under management be brought under Schroders’ wing.
Shares lifted nearly three per cent to 3,474p per share this morning.
London-headquartered Schroders’ majority share will account for 75 per cent of the firm. The merger will see Greencoat become part of Schroders Capital, and will be known as Schroders Greencoat.
The move signals the growing momentum behind the sustainable finance push, with Greencoat being one of Europe’s largest renewable infrastructure managers.
Greencoat founder Richard Nourse said: “Combining this team with Schroders’ global distribution network and expertise will enable clients to capitalise on the unequalled opportunity that our sector represents – a trillion dollar investable universe – and the chance to meaningfully support the global transition to net zero.”
Together, Schroders and Greencoat are looking to capitalise on the growth of sustainable finance, as the UK scrambles to meet its net zero target.
Finance for the net zero transition globally is expected to grow by more than $1 trillion by 2030, Schroders said in a regulatory filing today.
Schroders boss Peter Harrison said: “Its culture is an excellent fit with ours and Greencoat’s focus aligns very closely to our strategy, continuing our approach of adding capabilities in the most attractive growth segments we can provide to our clients.”