Taaleri SolarWind I Fund is Finland’s first international private equity fund investing in renewable energy, and the focus of its investments is on solar energy and wind power.
Taaleri’s response to the revolution in the global energy markets was to establish the SolarWind I Fund, which was opened to investors in late 2016. Over a period of six months, the fund accumulated investment commitments worth approximately €87 million from a total of some 500 investors. The Fund investors are predominantly Finnish institutional and HNW investors.
The Taaleri SolarWind I Fund invested in wind and solar investments internationally. The SolarWind I is fully committed, and the investment period ended on January 31, 2019. The Fund has acquired significant stakes in a 158 MW wind farm in Serbia, a 248 MWp solar plant in Jordan, a 23.4 MW ready-to-build wind farm in Sweden, and the fourth investment, a 14.4 MW ready-to-build wind farm in Sweden. All the projects are operational.
The Fund has been closed and is no longer accepting new investors.
This Fund is a financial product labeled as an Article 9 product according to EU SFDR regulation (2019/2088) and has an objective of making sustainable investments. The “do no significant harm” principle applies to all investments underlying the financial product, as they take into account the EU criteria for environmentally sustainable economic activities.
Statement on principal adverse impacts of investment decisions on sustainability factors
The fund is labelled as an Article 9 product according to EU SFDR regulation (2019/2088). The Fund has sustainable investment as an objective by constructing and operating renewable energy production. The Fund will therefore contribute to a significant CO2 emission offset or avoidance and, under the EU Taxonomy, have a substantial contribution to the environmental objective of climate change mitigation. The Fund's strategy is to invest only in activities that make it possible to reduce or avoid CO2 emissions.
The Fund has sustainable investments by the SFDR (2019/2088) and EU Taxonomy regulations (2020/852). Assets the Fund has invested in are targeted to sustainable investments (approx. 100%) with an environmental objective and EU Taxonomy aligned. However, some cash (estimated at max. 2%) may be held in the Fund accounts at the end of any reporting period.
The Fund's investments do not cause significant harm to any other sustainability objectives. This is ensured by a comprehensive internal and external due diligence assessment carried out prior to an investment decision and by considering all mandatory and two additional principal adverse impact indicators. All investments follow good governance practices and are committed to complying with and implementing the minimum safeguard criteria.
The investment strategy targets control investments in utility-scale construction and operational onshore wind farms and photovoltaic (PV) solar parks. The Fund's primary strategy is to invest in Portfolio Companies, primarily in Europe. According to the Fund's strategy, the Fund invests only in activities that make it possible to reduce or avoid CO2 emissions by Article 9, paragraph 3 of the SFDR regulation. The Fund is restricted from making investment decisions in technologies other than onshore wind farms and photovoltaic (PV) solar parks. The list of geographies is also restrictive.
The Fund's sustainable investment objective is monitored by collecting and reporting data on sustainability indicators. The fund investments' performance is monitored regularly and throughout the Fund's lifecycle.
The indicators that measure the Fund's sustainable investment objective have been determined based on the Fund's strategy. These sustainability indicators have been defined by evaluating which quantitative or qualitative quantities best describe the sustainability objective or the impacted sustainability factors and which indicators best describe the characteristics of the investments in the Fund. Investments' lifecycle emission calculations and calculations related to principal adverse impacts may be based on partial forecasts and use multipliers and estimates so that they may involve a small amount of uncertainty or inaccuracy. However, these estimates describe in enough detail the magnitude and scale of measurements and thus sufficiently describe the attainment of the investment objective and do not hamper the attainment of these objectives.
To ensure that the investments fulfil the criteria for sustainable investments, they have undergone thorough ESG-, technical-, financial-, tax, and legal -due diligence assessments. In addition, the manager is committed to reporting financial information and developing and implementing appropriate processes for managing and documenting good governance practices. To achieve the sustainable investment objective, used and monitored data are collected quarterly and reported annually.
The engagement policies concerning the Fund and its investees aim to ensure that the Fund's sustainable investment objective is realised and that the Fund nor its investments cause significant harm to the environment, society or employees, and that the activities do not violate human- or workers' rights, nor participate in corruption and bribery. The manager regularly monitors and audits our own operations and investments. No reference benchmark is designated to attain the sustainable investment objective of the financial product. Thus, the used sustainability indicators and investment targets fulfil the minimum standards common for EU climate transition benchmarks and EU Paris-aligned benchmarks and minimum standards for EU Paris-aligned benchmarks as defined in the (EU) 2020/1818 regulation. Target companies commit to setting and implementing science-based emission reduction plans to achieve net zero emissions by 2030.
The Taaleri SolarWind I fund invested in wind and solar investments internationally. The fund has made four investments.
Read more of the fund investments here