Linklaters has advised Commerz Real AG in establishing their first impact fund for private investors which focusses on real assets. Structured as a Luxembourg European Long Term Investment Fund (ELTIF), Klimavest focuses primarily on the renewable energy sector, seeking assets that make a positive contribution to ecologically sustainable goals.
Managed by Commerz Real Fund Management S.à r.l., Klimavest aims at building a portfolio with a value of at least EUR 25 billion, of which EUR 10 billion is to be raised through equity capital. Klimavest will target industries and sectors whose economic activity supports the transition to a low carbon, sustainable economy, such as energy production, transmission and storage, along with transport, mobility and the mass development of electric components and transit systems.
Martin Mager, Investment Funds partner, 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 saw investments in its existing sustainable assets grow by 50 percent this year and are confident that Klimavest is the right product launched at the right time. One exclusive feature, unique for an ELTIF investing in infrastructure assets, is that Klimavest is an open-ended fund offering daily dealing in line 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 exclusively via Commerzbank and to the public in Germany, with plans to widen their distribution at a later stage. Aiming at delivering an annual return of between 3 to 4 percent, the minimum investment stands at 10,000 euros and investors will be updated regularly on the positive climate impact of the fund’s assets.
