SHERIDAN, WYOMING – Feb. 18, 2025 – Aquila Capital, a leading asset manager specializing in sustainable real asset investments, today announced the launch of its Aquila Capital Energy Transition Fund I (“ETF I” or “Fund”), in collaboration with shareholder Commerzbank. This Article 9 fund is poised to drive Europe’s decarbonization efforts through strategic investments in energy storage, decentralized renewable energy systems, and enabling infrastructure.
First Investment Secured: A 56 MW/112 MWh Battery Storage System in Germany
The ETF I has already secured its first investment: a 56 MW/112 MWh grid-connected battery energy storage system located in Germany. With an anticipated operational date of 2026, this project underscores Aquila Capital's commitment to capitalizing on the growing demand for grid flexibility within Germany's expanding clean energy market. Aquila Clean Energy EMEA, a company within the Aquila Group, will provide support during the construction and operational phases, leveraging its extensive expertise in the battery storage sector.
Focus on Value-Add Infrastructure and Decarbonization
Classified as an Article 9 fund under the Sustainable Finance Disclosure Regulation (SFDR), the ETF I is specifically structured to advance Europe’s ambitious decarbonization objectives. The fund's investment strategy focuses on value-add infrastructure, encompassing not only grid-scale battery storage but also Behind-the-Meter solutions for decentralized renewable energy generation, such as home energy systems. Furthermore, the ETF I will target investments in enabling infrastructure, including charging networks for electric vehicles and industrial heating solutions.
Targeting EUR 600 Million Fund Size and Attractive Returns
The ETF I is targeting a fund size of EUR 600 million and aims to deliver gross returns of 14–16% per annum. This includes annual cash distributions of 6–7%, combined with long-term capital appreciation. The fund operates with a closed-end structure, typically holding assets for a period of five to seven years.
Addressing the Investment Gap in Europe’s Energy Transition
With over EUR 500 billion in annual expected investment required to achieve Europe’s energy transition targets, the ETF I plays a crucial role in bridging the investment gap by channeling private capital into essential infrastructure projects. Aquila Capital's proprietary pipeline, which includes 2.9 GW of battery storage projects, ensures access to a robust pipeline of high-quality investment opportunities. The fund also benefits from the Aquila Group’s extensive market expertise in clean energy investments and related sectors.
Leadership Quotes
Christian Holste, Head of Client Advisory and Business Development at Aquila Capital, commented: “Aquila Capital’s ETF I offers professional investors an unparalleled opportunity through which they can achieve strong financial returns while actively contributing to Europe’s sustainable future. By focusing on value-add infrastructure, the Fund aims to fill a critical gap in the market and combine economic benefits with a measurable climate impact.”
Markus Wandt, Chief Investment Officer at Aquila Capital, added: “At Aquila Capital, we are leading the way in tapping into value-add infrastructure on the back of our strong track record in utility scale clean energy generation. ETF I is a logical next step in our product offering to professional investors looking for higher returns than in infra-core and core-plus strategies. This first investment supported by Commerzbank confirms our investment and capital raising ambitions. Our experienced investment team members not only know this asset class in and out but also have preferred access to a deal flow in the various regional markets they serve.”
About Aquila Capital
Aquila Capital is an asset manager specializing in sustainable real asset investments. Since 2007, the company has provided compelling investment opportunities focused on driving the energy transition and sustainable infrastructure. Aquila Capital's goal is to deliver resilient returns while supporting clean energy initiatives and contributing to the decarbonization of global infrastructure.
Aquila Capital offers tailored solutions designed to meet the needs of both institutional and retail clients. As a one-stop-shop for equity and private debt investments, the company is dedicated to making sustainable real asset investments accessible and straightforward. Aquila Capital is licensed as an Alternative Investment Fund Manager (AIFM).
In 2024, Aquila Capital entered a strategic partnership with Commerzbank, with the shared ambition of becoming a leading asset manager for sustainable investments in Europe and beyond. The company remains an important part of the Aquila Group, leveraging the Group's industrial network to benefit its investors.
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