EIF Commits €30m To New Energy Transition Fund

Xavier Anthonioz, founder and CEO of 123 Investment Managers (© 123 IM).

The European Investment Fund (EIF), 123 Investment Managers, and Lendosphere announce a sustainable fund targeting small and medium-sized enterprises involved in small-scale projects aimed at reducing greenhouse gas emissions.

The fund will be managed by Paris-based company 123 Investment Managers and will be advised by Lendosphere, a crowdfunding platform dedicated to the energy transition sector. It will look to counteract the effect of climate change by providing tailor-made senior debt to SMEs and small mid-caps, accelerating the deployment of renewable energies. Industrial SMEs with meaningful track records, revenues, and assets in seeking additional non-dilutive debt financing will be the main borrowers targeted by the fund.

Large-scale infrastructure and renewable energy projects find adequate financing through banks or specialised funds, but this is much harder for small individual renewable energy projects. The 123 Transition Energétique 2 fund will seek to bridge that gap.

“The EIF is delighted to be able to contribute through this InvestEU investment to the Energy Transition 2 fund […] This is closely aligned to the main priorities of both the EIF and the EIB Group – namely, accelerating the energy transition in Europe by attracting more private investment in this field, and supporting the development and growth of European businesses across the 27 EU Member States.”

Xavier Anthonioz, founder and CEO of 123 Investment Managers

123 Investment Managers targets a first closing for the second half of 2024, including a €30m commitment by the EIF, and a target size of €100m to €120m for the fund. 123 Transition Energétique 2 is classified as an Article 9 fund under the EU’s Sustainable Finance Disclosure Regulation (SFDR). Its impact will be measured based on three indicators: installed power capacity (MW), renewable production (MWh) and avoided carbon emissions (TCO2eq), influencing part of the Carried interest.

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