Following media reports last night, asset manager Schroders has this morning confirmed that it is in advanced talks to take what it described as a ‘signficant stake’ in Greencoat Capital, which manages solar, wind and other renewables funds.
“Schroders continues to evaluate potential acquisition opportunities in line with its strategy to build a comprehensive private assets platform and enhance its leadership position in sustainability,” the asset manager said in a statement.
It added that there is no certainty that the talks will lead to any final agreement, and a further announcement is due “when appropriate.”
Schroders’ confirmation comes after media reports last night revealed the asset manager was swooping in on Greencoat Capital and looking to splash some £360m to obtain a massive 75 per cent controlling stake in the business, in a move that would significantly strengthen its green offering, as the transition to net zero becomes a bigger boardroom priority.
Greencoat, which has around £6bn under management and recently branched into the US market, will join Schroders’ lofty £717bn in assets under management if the deal goes ahead.
The renewable energy investment fund has been eyeing a buyer for some time, after it was put up for sale earlier this year, hiring Fenchurch Advisory Partners to source potential buyers.
Schroders reportedly would have faced tough competition for the deal, after the fund caught the eye of a number of large fund managers in the city.
Details of the full deal are expected to be announced in the coming days.