SWEN Impact Fund for Transition 2 (‘SWIFT 2’) reaches final close well above target

SWIFT 2 has already made around twenty investments and should be fully deployed by the end of 2023. The fund invests directly in methanization and biomethane, hydrogen and renewable heat production. More geographically diversified than SWIFT 1, SWIFT 2 has portfolio companies in 10 European countries (France, Spain, Netherlands, Italy, Portugal, United Kingdom, etc.) and, on a smaller scale, in North America. Investment tickets range from 5 to 50 million euros.

Like its predecessor, SWIFT 2 dedicates 60% of its investments to biomethane, a fast-growing renewable energy source. In 2019, when SWIFT 1 was launched in France, there were 50 biogas plants, compared with 700 today.

Since 2019, SWEN CP has contributed to the development of over 200 methanization units.

A favorable regulatory environment for investments in renewable energy

SWIFT 1 and 2 both have an especially strong position on biomethane, however, the share of green hydrogen has increased significantly in this second vintage (30% versus 10% for SWIFT 1). This increase can be ascribed to a market that is beginning to mature in Europe, fostered by a favorable regulatory framework, notably the “ReFuelEU” initiative, which aims to increase reliance on sustainable fuels in the aviation and maritime sectors by 2030, as well as the European Renewable Energy Directive (RED III).

Against this backdrop, several infrastructure projects in the SWIFT 2 portfolio are due to be deployed in 2024, notably Portugal’s first-ever hydrogen production plant.

An even stronger team

To keep pace with the exponential growth in SWIFT 2’s activity, the team has doubled in size since the first vintage, and now comprises 12 experts in the gas industry and infrastructure financing, plus 9 ESG/Impact specialists, who are involved in every investment decision. Further recruitments are planned over the next year. A full 80% of SWIFT 2’s acquisitions have been direct transactions carried out by SWEN CP without intermediaries, bearing witness to the quality of the company’s sourcing and solid relationships forged with project owners and industrials.

SWIFT 2 is an SFDR Article 9¹ impact fund, whose sustainable investment objective is decarbonization of the gas sector. Since 2021, it has been distinguished by the Greenfin label, a guarantee for investors seeking to contribute to financing the energy transition. The launch of SWIFT 3 is due to be announced shortly.

¹ Regulation (UE) 2019/2088 Sustainable Financial Disclosure Regulation on the publication of sustainability information by financial services providers.