Hot on the heels of an announcement that Macquarie Green Energy and Climate Opportunities Fund is set to acquire a diverse portfolio of six investments spanning solar, wind, energy storage, and natural climate solutions from Macquarie Asset Management, comes a significant piece of investment news from UniSuper.

The earlier announcement effectively confirmed that the agreement between Macquarie Asset Management and the MGECO Fund was made to acquire six companies and projects spread across the Americas, Asia-Pacific, and Europe. These include Galehead Development, Treaty Oak Clean Energy, Aula Energy, Blueleaf Energy, Outer Dowsing, and Forliance. Having been developed by Macquarie Asset Management’s Green Investments team since 2018, and collectively representing over 17 GW of green energy capacity across various stages of development, construction, and operation, the portfolio already had the backing of significant clients of Macquarie Asset Management, such as UniSuper, LGPS Central, and Border to Coast Pensions Partnership.

UniSuper now appear set to take their backing of the Macquarie renewables fund to new heights.

UniSuper Announces significant Investment In MGECO

UniSuper announced its commitment of up to USD 400 million to the Macquarie Green Energy and Climate Opportunities Fund (MGECO), marking a significant step in investing in the global energy transition and climate initiatives. As an open-ended fund, MGECO focuses on large-scale, mature sustainable technologies, aiming to facilitate the transition to net-zero emissions while meeting sustainable energy demands both in Australia and internationally. It seeks to offer diversified exposure to the global renewable sector by tapping into a growing pipeline of opportunities spanning different geographies, technologies, power markets, renewable resources, and asset lifecycle stages.

With a strategic focus on resilience across economic cycles, MGECO initially targets assets in hard-to-access sectors and geographies, presenting opportunities for growth. The fund’s portfolio is anticipated to include six seed investments spread across Australia, Asia, the US, and Europe. These investments encompass a range of projects in onshore and offshore wind, solar, storage, and carbon-related initiatives.

 

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Among the investments is Aula Energy, a renewable energy enterprise set to develop, construct, and operate utility-scale wind, solar, and integrated battery projects across Australia and New Zealand. Aula has already secured advanced development rights for approximately 4 gigawatts of projects spanning from Western Australia to South Australia and the eastern states, with plans for further expansion.

UniSuper’s Chief Investment Officer, John Pearce, expressed the fund’s enthusiasm as a significant investor in MGECO, highlighting its alignment with Macquarie’s robust financial backing and proven track record in sustainable investments. Pearce emphasized the importance of such investments in accelerating the transition to net-zero emissions, while also generating attractive long-term returns for members.

UniSuper CIO John Pearce

“This is an investment of scale and quality with a pipeline of opportunities helping to accelerate the transition to net zero. It will enable UniSuper to invest across technologies and geographies in projects that we believe will generate attractive long term returns for our members.

The energy transition will require mature sustainable technologies to meet net zero targets in Australia and around the world. Macquarie is one of the most experienced managers in this space with deep expertise, strong financial backing and a proven track record, their experienced on the ground investment and operational teams and global networks are second to none. The investment supports UniSuper’s strategy to develop smart partnerships with high quality, aligned managers to complement our in-house investment capability.”

Aligned with UniSuper’s objective to achieve net-zero emissions in its investment portfolio by 2050, the partnership with MGECO underscores its commitment to supporting Australia’s emissions reduction goals. The fund’s structure and long-term investment horizon resonate with UniSuper’s members, many of whom are investing their retirement savings with a view toward sustainable, long-term growth. This strategic investment approach reflects UniSuper’s broader strategy of forging smart partnerships with high-quality, aligned managers to complement its in-house investment capabilities.