Palisade Real Assets wins mandate

Palisade Real Assets' UK-based bioenergy fund scored a £200 million ($381m) mandate from a major European asset manager.

APG Asset Management awarded the mandate on behalf of Netherlands' major pension fund ABP, which oversees some €500 billion ($805bn) in assets.

The fund, BioticNRG, invests in a pipeline of anaerobic digestion facilities, associated biogas and biofertiliser operations and other infrastructure that essentially captures and converts energy from organic waste into efficient heat, electricity, and transport solutions.

On the back of the new mandate, Palisade acquired AD Aggregator Platform (ADAP) and Material Change (MCL) to build out BioticNRG and expand its footprint in the organics and bioenergy sector in the UK.

ADAP operates six anaerobic digestion plants and a composting business, while Material Change also operates in anaerobic digestion, composting, and development.

Palisade Real Assets chief executive Stephen Burns said the significant mandate bolsters BioticNRG's ability to build value, create a highly sustainable bioenergy platform and deploy its decarbonisation credentials across hard to access sectors such as transport, waste, energy, and agriculture.

BioticNRG secured its first commitment in 2022 from Malaby Biogas.

APG senior portfolio manager for infrastructure Iulia Grosu said investing in biogas and biomethane offers a promising solution to mitigate climate change, reduce waste, and provide renewable energy solutions while contributing to carbon negative practices.

"We have been working with the Palisade Real Assets team to establish BioticNRG and ensure it fits ABP's commitment to the energy transition, while securing attractive returns for its participants. Their subsequent acquisition of ADAP and MCL brings the expertise and commitment which will underpin our long-term vision for sustainability. We look forward to the further growth of the BioticNRG platform," she said.

Launched in 2021, Palisade Real Assets is a subsidiary Palisade Investment Partners, which is part of Pinnacle Investment Management's stable.