Azora has filed an application with the Spanish Securities and Exchange Commission (CNMV) to register its new private equity vehicle, the Azora European Climate Solutions Fund (FCR), in its register of entities. This fund, with an investment target of EUR 250 million and a Europe-wide reach, will focus on investing in sustainable companies committed to the decarbonisation of the economy, especially in the field of real estate assets.
The PEF will be registered as Article 9 under the SFDR guidelines, which means that it will have specific decarbonisation objectives. The fund's strategy is to invest in small and medium-sized companies with proven business models that require capital to grow, by taking strategic stakes in them through venture capital investments.
Investment will focus on urban solutions, energy transition and sustainable agriculture
The fund's investment strategy will focus on three main areas: urban solutions, energy transition and sustainable agriculture. Azora Capital, which is promoting the fund, has already invested in two companies under this strategy. First, it has taken a strategic stake in ISFA, a Spanish company dedicated to the sustainable development of almond trees. Secondly, it has invested in Abatable, a London-based technology company that offers advisory services in the purchase and sale of carbon credits.
The company says that the fight against climate change offers attractive investment opportunities, especially in Europe, where there is strong regulatory backing. The real estate sector, which is responsible for 40% of CO2 emissions, has a strong commitment to decarbonisation targets and offers growth opportunities for companies that come up with innovative solutions to meet these targets.
Azora, with its more than 20 years of experience in real estate asset management, its presence in Europe and its technical expertise in renewable energy, will focus on identifying companies that contribute to climate change mitigation and provide capital for their growth. In addition, the fund will be supported by CBRE in the identification of investment opportunities, as well as in the growth and development of the companies after closing.