Pacific Equity Partners targets mid-market infrastructure decarbonisation
Emissions reduction focus for transport, healthcare, energy and data centres
Pacific Equity Partners Secure Assets Fund II works with its mid-market infrastructure investee companies to identify decarbonisation pathways with a goal of reaching net zero emissions by 2040.
$80m
CEFC commitment
$1.4 billion
infrastructure fund
Decarbonising
mid-market assets
We see significant opportunities to invest in leading mid-market businesses that need support working through the energy transition and decarbonising their operations. Our investment focus remains on finding good businesses which will also benefit from moving towards a decarbonisation goal.Andrew CharlierManaging Director, PEP
Our investment
The CEFC has up to $80 million equity in the $1.4 billion Pacific Equity Partners Secure Assets Fund II.
Pacific Equity Partners (PEP) has some $8.7 billion in assets under management. It is one of Australasia’s oldest private markets fund managers with investment experience in a wide range of industries and sectors including energy, financial services, consumer products and industrial services.
PEP SAF II is building on the investment theme of PEP SAF I where investments featured exposure to remote energy infrastructure company Zenith Energy, energy network operator WINconnect and smart metering business Intellihub.
The CEFC was a direct investor in Intellihub between 2018 and 2021, playing an important role in its development.
our impact
Mid-market infrastructure assets
Mid-market infrastructure assets in Australia are largely privately held and have a material impact on Australia’s emissions.
Investing in this sector gives the CEFC the capacity to extend its decarbonisation influence across broader areas of the economy.
This investment is about connecting the power and commitment of private capital to a diverse range of infrastructure assets which have significant potential to help Australia achieve net zero emissions by 2050. Importantly, this investment will also influence the emissions profile of the businesses that use these infrastructure facilities, such as EV charging spaces in hospital and airport carparks.Rory LonerganChief Investment Officer – Infrastructure and Alternatives, CEFC
The PEP SAF II portfolio targets value-add mid-market infrastructure and infrastructure-like businesses, including assets with secure or contracted base cashflows in areas from healthcare and energy to transport and data centres.
SAF ll decarbonisation approach
PEP will work with SAF ll investee companies to understand their carbon footprint and identify decarbonisation pathways which aim to:
- reduce scope 1 and 2 emissions by 50 per cent by 2030
- achieve net zero scope 1 and 2 emissions by 2040
- address scope 3 supply chain emissions, in line with scenario modelling for a 1.5°C world by 2050.
PEP will also look to drive further decarbonisation efforts across its existing funds as it works with companies seeking to meet the challenges of lowering their emissions.
