Linklaters has suggested Commerz Real AG in establishing their first impression fund for personal buyers which focusses on actual belongings. Structured as a Luxembourg European Long Term Investment Fund (ELTIF), Klimavest focuses totally on the renewable power sector, in search of belongings that make a optimistic contribution to ecologically sustainable targets.
Managed by Commerz Real Fund Management S.à r.l., Klimavest goals at constructing a portfolio with a worth of a minimum of EUR 25 billion, of which EUR 10 billion is to be raised by means of fairness capital. Klimavest will goal industries and sectors whose financial activity supports the transition to a low carbon, sustainable economic system, corresponding to power manufacturing, transmission and storage, together with transport, mobility and the mass improvement of electrical parts and transit methods.
Martin Mager, Investment Funds associate, Linklaters LLP Luxembourg says :
“Building a sustainable, green future is increasingly seen as a top priority for governments, investors and organisations. We are delighted to have worked with Commerz Real to launch their first impact fund and we are certain that we will see the demand for environmentally and ethically solid investments soar in the coming years.”
Commerz Real noticed investments in its current sustainable belongings develop by 50 p.c this yr and are assured that Klimavest is the suitable product launched on the proper time. One unique function, distinctive for an ELTIF investing in infrastructure belongings, is that Klimavest is an open-ended fund providing every day dealing in step with liquidity availability.
Mager adds :
“Our investment funds practice brings invaluable expertise in designing and implementing tailored, innovative fund structures. Klimavest is an excellent example of how we can support our clients achieve their business goals by helping to develop solutions that their clients want to see.”
Commerz Real will initially be distributing Klimavest solely through Commerzbank and to the general public in Germany, with plans to widen their distribution at a later stage. Aiming at delivering an annual return of between three to four p.c, the minimal funding stands at 10,000 euros and buyers shall be up to date commonly on the optimistic local weather impression of the fund’s belongings.