LPs commit over EUR 1 bn to HitecVision’s energy transition strategy
Stavanger, 11 August 2022:
HitecVision is pleased to announce that it has held a final close on the HitecVision New Energy Fund (NEF), oversubscribed at the Fund’s hard cap of EUR 875 million, exceeding its EUR 500 million target. In addition, EUR 175 million in co-investment capital has been raised for Vårgrønn, the Fund’s first offshore wind investment, meaning that HitecVision will deploy EUR 1.050 million for its new energy transition strategy.
Ole Ertvaag, Founding Partner and CEO of HitecVision, comments: “The world’s transition from fossil fuels to a new energy system will need significant investment over the next decades. The New Energy Fund is the first HitecVision fund to address this market, and in the future, all our new portfolio companies will be companies that contribute to the energy transition. We are however also immensely proud of our legacy from the oil and gas industry, and we intend to remain a good owner for our existing portfolio companies in that industry and their thousands of employees, as we transition to a low carbon economy.”
The New Energy Fund is HitecVision’s first non-oil & gas fund, and is defined as an Article 8 (“light green”) fund under EU’s SFDR. The Fund has already deployed EUR 540 million across three investments in onshore and offshore wind power, district heating with carbon capture, and other energy transition initiatives, illustrating HitecVision’s strength of relationships and ability to execute on its new strategic focus.
In raising its first fund to fully embody the Firm’s new strategy focusing on the energy transition, HitecVision has received strong support both from existing investors and from a number of new blue-chip investors from both Europe and the US. NEF thus joins previous HitecVision funds in having a well-diversified investor base comprising public and private pension funds, financial institutions, sovereign wealth funds, university endowments, family offices and charitable foundations.
Several of these LP’s are leading global investors with a strong focus on sustainability and impact, sharing HitecVision’s ambitions for the energy transition. HitecVision’s well-established model of building sustainable businesses of scale has been very well received in an investment segment otherwise largely dominated by low-return infrastructure investments.
Among the Fund’s investors are: AIMS Imprint group of Goldman Sachs Asset Management; Ardian; Första AP-fonden (AP1); KLP; LACERA (Los Angeles County Employees Retirement Association); Manulife Financial Corporation and Sparebank1 Forsikring.
HitecVision is a leading energy-industry private equity firm, focused on investments in the European energy transition. With AUM of EUR 7 billion, HitecVision has established or contributed to the development and growth of more than 200 companies across the energy industry, including some of the leading independent oil and gas companies in Norway and the UK. HitecVision is headquartered in Stavanger, Norway, with offices in Oslo, London and Milan.