Queensland Investment Corporation (QIC), one of Australia’s largest investment managers, announced that it has invested in San Francisco-based Generate Capital, the clean energy infrastructure investor, which raised $1 billion in new funding to expand its renewable energy and sustainable infrastructure fleet.
QIC, through QIC Global Infrastructure, joins AustralianSuper pension fund, UK’s Railway Pension, Swedish buffer fund AP2, and other global institutional investors that contributed to the fundraising that will finance clean-energy projects across North America.
As part of QIC’s equity investment, Ross Israel, head of QIC Global Infrastructure, will join the Generate Board of Directors, which will be chaired by Richard Kauffman, former New York State Energy Czar and current Chairman of the New York State Energy Research and Development Authority (NYSERDA), according to the announcement.
QIC did not disclose the financial details of its investment but Israel said the deal is part of the firm’s pursuit for thematic infrastructure investment opportunities in the North American market.
Founded in 2014 by executives including Scott Jacobs, a former McKinsey & Co partner, Generate Capital builds, owns, operates, and finances sustainable infrastructure that delivers resource solutions for companies, government, and communities.
The company has more than 25 technology and project development partners and serves over 400 companies, universities, school districts, cities, and non-profits across North America. Over the last five years, the firm has built more than $1 billion in sustainable infrastructure assets across the energy, waste, water, and transport markets.
“At Generate, we are working with the leading pioneers to bring about an infrastructure revolution, one that is democratized, digitized, decentralized, and decarbonized,” said Jacobs.
QIC Global Infrastructure has a growing portfolio of assets in the US, including CampusParc at The Ohio State University and MasParc and Mobility LLC at Northeastern University. The two institutions are implementing innovative and customer-led transportation technologies and mobility services for the future.
“This investment is an important step for QIC Global Infrastructure as we continue to expand our U.S. infrastructure platform and local investment team based in New York,” said Arash Shojaie, QIC’s Energy & Utilities Sector Leader for North America effective June 2020.
Generate Capital’s Generate Capital’s $1-billion fundraising joins a string of climate-related funds that investors have expressed interest in. In Asia, a number of firms have also raised funds dedicated to investing in climate-related and sustainable development-focused projects.
Last month, a BlackRock-backed group announced it is raising an initial $500 million for a private equity fund that will invest in climate change-linked infrastructure upgrades in emerging markets.
The International Finance Corporation also proposed an investment of up to $100 million in Global Climate Partnership Fund SA, an emerging markets-focused closed-ended fund that seeks to reduce greenhouse gas emissions.
Early this week, the Manila-headquartered Asian Development Bank announced it is raising $50 million for its debut fund that will invest in companies that contribute to the achievement of the Sustainable Development Goals in the region.