Meridiam announced today it has successfully raised $6.1 billion in 2021 (over €5 billion). The firm now manages close to $18 billion (over €15 billion), increasing its Assets Under Management (AUM) by c. 80%.

The new funds will be fully aligned with the firm’s sustainability objectives and will target a temperature trajectory aligned with the Paris agreement[1]. They will qualify as Article 9 under the new EU Sustainable Finance Disclosure Regulation (SFDR), the highest sustainable classification in Europe[2]. Therefore, those new funds will specifically have sustainable goals as their objective.

All future investments, as for all the existing projects of the firm, will provide sustainable and impactful solutions in three core sectors: mobility, energy transition & environment, and social infrastructure. All projects will contribute concretely to the United Nations Sustainable Development Goals (UN SDGs) and measured by the firm proprietary tool Simpl.  

The five new funds include:

• Two Successor funds for a total of € 2.8 billion ($3.4 billion)

Meridiam Sustainable Infrastructure Europe IV (MSIE IV)

Meridiam’s fourth generation European flagship fund reached its hard cap at €2.3 billion, five months after launch. MSIE IV will build on the established track record of its predecessor funds, having invested in more than 60 long-term sustainable infrastructure projects in Europe.  

Meridiam Infrastructure Africa Fund II (MIAF II)

MIAF II builds on the success of its first African fund, which closed in 2019 at €546 million and was already fully deployed across 13 major projects in less than 5 years. Meridiam has raised over €500 million for MIAF II and is expected to reach its target for this fund (€750 million). Through MIAF II, Meridiam further consolidates its position as a leading investment platform on the African continent for greenfield infrastructure with more than 25 investment professionals on the ground across 2 offices (Dakar in Senegal and Addis Ababa in Ethiopia) and 2 future offices to be opened by year end in South Africa and Gabon.

• Two new products for a total of €440 million (GIGF and TURF addressing respectively fast growing SMEs involved in transition economy and urban resilient infrastructure)

The Urban Resilience Fund (TURF)

TURF is a global blended finance, impact fund launched in partnership with the Rockefeller Foundation and the United Nations Capital Development Fund (UNCDF) to support cities in delivering critical resilient infrastructure projects. TURF will invest in both Europe and Africa and will include a Catalytic Capital Fund which will help cities in the project preparation phase. TURF reached first close and secured an amount of €290 million.

Green Impact Growth Fund (GIGF)

GIGF is a growth equity fund providing capital to innovative SMEs which are to become the champions of the ecological transition in Europe labelled Greenfin by the French Ministry of Ecological Transition and “Tibi Initiative” by the Ministry of Finance. GIGF has already raised more than €150 million and will invest across five sectors: low carbon economy, circular economy, sustainable cities and smart buildings, clean mobility and sustainable agriculture and food.

A New dedicated fund: Meridiam Sustainable Water and Waste Fund (MSWWF) to acquire the New-Suez 

Across these complementary strategies, Meridiam received commitments from over 60 institutional investors from Europe, Asia and North America, including leading insurance companies, public and private pension funds, as well as development finance institutions. Meridiam has received significant commitments from historical investors and existing partners across all strategies, representing 75% of total commitments. It shows their trust in Meridiam’s business model and eagerness to combat climate change and to accelerate and intensify the actions and investments needed for a sustainable low carbon future.

Sources:

[1] Namely to limit average temperature rise to well below 2°C and pursue efforts to limit it to 1.5°C (“Paris temperature goal”)

[2] https://www.institutionalassetmanager.co.uk/2021/03/23/297610/oyster-sustainable-europe-obtains-highest-sfdr-ranking