Australia's leading independent law firm, Corrs Chambers Westgarth, has advised Federation Asset Management on the launch of its Sustainable Australian Real Asset Fund.
The fund (known as SARA) is the only pure-play energy-transition investment fund of its kind focused on the Australian market. The fund is targeting $750 million in capital commitments and has, at the time of launch, signed anchor commitments of approximately 10% of its target size. GCM Grosvenor has committed capital to the strategy as an anchor investor in SARA. GCM Grosvenor is a global alternative asset management solutions provider with approximately $59 billion in assets under management across private equity, infrastructure, real estate, credit, and absolute return investment strategies.
SARA will invest in renewable energy projects & developments, energy storage systems and other sustainable infrastructure projects & developments across Australia and New Zealand. Given the transition of the region's electricity generation towards renewable sources, the fund will invest in a large investible universe. This includes building out Windlab Limited's extensive pipeline of Australian wind projects. With assistance from Corrs as legal adviser, Federation acquired an interest in Windlab Limited, a developer of renewable energy projects, with Squadron Energy Proprietary Limited in June 2020.
Head of Renewables at Federation, Mr Stephen Panizza, said: "There is an enormous opportunity set in the Australian renewables sector as we transition to a low carbon economy. We are delighted to partner with GCM Grosvenor to create what will be a leading investment vehicle to drive that transition. We have worked with Corrs to develop an innovative vehicle aimed at giving investors access to this opportunity."
Federation is a leading investor in sustainable infrastructure and renewable energy, social and education real estate, and operating companies that meet a social and economic need. Federation is a signatory to the United Nations Principles for Responsible Investing and is a member of the Responsible Investment Association of Australasia: www.federationam.com
The Corrs cross practice deal led by Partner, Fadi C. Khoury, included Rommel Harding-Farrenberg (Banking), Cameron Rider (Tax) and Adam Foreman (Corporate).
Lead Partner Fadi C. Khoury said: "We have worked closely with Federation Asset Management since inception of this Sydney based infrastructure investment manager. We advised Federation on the development of a fund vehicle structure that gives Australian and global institutional investors access to compelling renewable infrastructure investment opportunities."