The new alternative investments division of the Power Corporation group, which is dedicated to the decarbonization of the economy and climate change, continues its expansion with the arrival of a new investor, Canada Life, which injects 600 million into the new climate infrastructure credit strategy that was launched last fall.
With this transaction, Canada Life, which is another subsidiary of the Power Corporation group, takes a minority stake in the capital of Power Sustainable, the new investment division resolutely oriented towards climate change that the Montreal financial conglomerate set up in 2021.
But Canada Life also becomes the first investor in this new climate infrastructure credit fund which was launched to finance – via debt securities – projects linked to the energy transition, whether the construction of wind farms, farms solar, electricity transmission lines, etc.
“Power Sustainable has developed three distinct sustainable investment strategies,” Olivier Desmarais, president and CEO of this new entity of Power Corporation, explains to me.
“The first fund that we launched in 2021 is an energy infrastructure fund into which we transferred the assets that were held in Power Energy. We started with 500 million in assets of our own and 500 million from institutional investors. Today, this investment strategy has 1.8 billion, including 500 million which have not yet been deployed. »
PHOTO DOMINICK GRAVEL, THE PRESS
Olivier Desmarais, President and CEO of Power Sustainable
This energy infrastructure fund is managed in Montreal by the Power Sustainable teams and it invests in projects of all kinds that are linked to the decarbonization of the economy, whether batteries for electric vehicles, wind turbines, renewable natural gas…
Could this fund participate in financing the wind and solar farm construction projects that Power Corporation’s TES Canada company wishes to build in Mauricie to supply energy for a future green hydrogen manufacturing plant in Shawinigan?
“Yes, we could participate in a call for tenders. I would have to consult my investment teams, but I think it would be possible,” said Olivier Desmarais.
Today, more than $1 billion of the energy infrastructure fund’s assets come from institutional investors or family fortunes outside the Power Corporation group of companies.
Power Corporation’s stakes in bus manufacturer Lion and high-performance lighting solutions manufacturer Lumenpulse, however, have not been transferred to the new alternative investments division.
“Power Corporation has decided to keep these investments until they reach maturity,” explains Olivier Desmarais.
Responsible agri-food and carbon-free industries
After energy infrastructure, Power Sustainable launched a second fund which was called Lios and which is dedicated to initiatives in the agri-food sector.
Food will continue to be a major issue in the context of climate change with the crucial importance of better managing resources and reducing the environmental footprint.
The fund invests in medium-sized companies – up to 200 million in revenue – that produce or process food responsibly and sustainably.
“We carried out a first round of financing and we raised 290 million, 80% of which came from external investors. We made a first investment in the company Good Leaf in partnership with McCain. Good Leaf already grows lettuce and microgreens in vertical greenhouses.
“Thanks to our investments, we were able to build a new greenhouse in Alberta and another in Longueuil which will soon begin operations,” explains the CEO of Power Sustainable.
The group plans to launch a fourth fund or investment strategy by the end of the year which will specialize in industrial decarbonization projects, financing initiatives that will enable companies to reduce their carbon emissions.
“Once this strategy is in place, we will have our four knights of sustainable development to fight the climate apocalypse,” jokes Olivier Desmarais, who also takes the mandate of Power’s alternative investments division very seriously. Corporation.
“We must demonstrate that we can invest sustainably while being profitable and get people to favor this type of investment rather than in vehicles that have no impact,” the CEO hopes.
It is expected that trillions of dollars will need to be invested globally to finance the energy transition and lessen the impact of climate change. There will therefore be no shortage of business opportunities.
According to its president, Power Sustainable aims to position itself within ten years as a Canadian leader in sustainable development and to position itself among the global players in investment in decarbonization.
reference: www.lapresse.ca