GLP Capital Partners (GCP), the investment and asset manager of Asia’s warehouse giant GLP, on Tuesday, announced the establishment of its first commingled clean energy strategy in China with about 4 billion yuan ($556.1 million) in commitments.
GCP, which focuses on real assets and private equity (PE) across high-growth Asian markets, expects the overall investment of its new RMB fund to reach approximately 20 billion yuan ($2.8 billion).
The fund secured the capital commitments from China’s domestic institutions including the National Green Development Fund and feeder funds affiliated with CHN Energy Investment Group, one of the country’s largest electricity providers. A state-owned energy enterprise also committed to the strategy, said GCP in a statement, without identifying the company.
With a focus on both greenfield projects and acquisitions, the capital raised provides GCP with dry powder for renewable energy investments across wind and solar energy, as well as energy storage infrastructure and related energy management solutions, said the firm.
Its parent GLP will manage the investment, development, and operations of the invested renewable assets through dedicated teams in China.
GCP executive vice chairman and president (China) Teresa Zhuge said: “Renewable energy is one of GLP’s key pillars, focusing on facilitating the energy transition across new economy sectors for a sustainable future.”
With $125 billion in total assets under management (AUM) across 54 funds as of March 31, 2023, GCP has also invested in electric vehicle (EV) infrastructure and related technologies, including EV manufacturers, battery makers, charge-point operators, as well as energy-as-a-service software providers, through its PE vehicles.
The firm is looking to cash in on China’s transition into an eco-friendly economy, as the country targets to increase the share of non-fossil fuel, such as solar and wind energy, to 25% by 2030 and 80% by 2060 against its total energy consumption, versus 17.3% in 2022.
The official launch of GCP’s maiden China-focused clean energy fund followed the close of its latest flagship onshore income fund, China Income Fund VIII (CIF VIII), with equity commitments of about 2.6 billion yuan ($361.7 million) in July.
The CIF VIII portfolio comprises over 5 billion yuan ($695 million) of core, income-generating modern logistics located across key logistics hubs, including Shanghai, Guangzhou, Zhongshan, Xiamen, Changsha, and Chengdu.