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CDPQ Expands into Renewable Energy Infrastructure in Spain

The Canadian pension plan continues its growth in sustainable investments around the globe.
By Sarah Min


Global institutional investor Caisse de dépôt et placement du Québec (CDPQ) is expanding into renewable energy infrastructure in Spain with a purchase of solar assets. 

The purchase of a portfolio of 73 solar power systems is the first equity infrastructure investment in Spain for the Quebec pension fund, renewable energy manager and investor Q-Energy said Tuesday. The assets bought through the Q-Energy III Fund will supply enough electricity to support more than 115,000 households. 

“With this transaction, we are laying the foundation of our renewables platform in Spain, which will allow us to progressively increase our presence in this key renewable market and achieve CDPQ’s carbon intensity reduction targets,” CDPQ Executive Vice President and Head of Infrastructure Emmanuel Jaclot said in a statement. 

Q-Energy, which started in 2007 and operates 150 renewable energy plants across Spain, Italy, and Germany, will continue to manage the assets for CDPQ.

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CDPQ is one of the largest institutional investors in renewable energy with a 2050 carbon neutral target. Its other renewable investments include a $75 million reinvestment in Indian solar power producer Azure Power Global and a reinvestment into electric vehicle charging company AddÉnergie. The pension fund is also funding solar and wind farms in France, Mexico, and the United Kingdom. 

The Quebec pension fund has about $21.2 billion, or about 8% of its $253 billion total portfolio in infrastructure assets. In the first half of 2020, CDPQ lost 2.3% in asset value, while its infrastructure allocation lost 1%. The pension fund said the infrastructure portfolio is showing some resilience despite exposure to the transport sector, which is hard hit from the pandemic. 

The solar transaction is expected to close in the coming months. The Royal Bank of Canada and Cuatrecasas advised Q-Energy on the deal. BNP Paribas and Watson Farley & Williams counseled CDPQ. 

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Home > News > Asset Management Culture > Harvard Spins Off Natural Resources Team
Asset Management Culture

Harvard Spins Off Natural Resources Team

Solum Partners will be led by former Harvard Management Company division chief Colin Butterfield.
By Michael Katz


Harvard Management Company (HMC), which manages Harvard University’s $41.9 billion endowment, has spun off its natural resources team into an independent investment management firm called Solum Partners.

Colin Butterfield, head of Harvard’s natural resources team, will be the firm’s CEO, and will lead a team of more than 25 with experience in the food and agriculture and investment management industries.

Solum will focus on real assets in the agriculture and food production industry, and will invest in global agriculture and food opportunities, with the goal of targeting large-scale agricultural production assets with the potential for vertical integration in areas such as distribution and marketing.

“Our team sees an opportunity to generate attractive, risk-adjusted returns by helping agricultural producers who need a true partner,” Butterfield said in a statement.

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The firm said its strategy is driven by a focus on “strong partnerships, operational excellence, and continuous improvement, and is underpinned by a comprehensive approach to ESG [environmental, social, and governance investing].”

HMC CEO Narv Narvekar said in a message to HMC affiliates last week that, under Butterfield’s leadership, the natural resources team “immediately developed a robust set of sustainable investing guidelines to ensure that those tasked with operating our investments act as responsible stewards of the environment,” according to The Harvard Crimson.

Narvekar also said Harvard will “continue to work closely” with Solum as investors and advisers on the management and sale of the university’s remaining natural resources assets.

The first action by Solum was to acquire certain investments that the team managed or made while at Harvard with the backing of affiliates of HMC and American International Group. The investments include avocado, olive oil, apple, blueberry, and soybean production assets, as well as stakes in avocado distribution company Westfalia and US extra virgin olive oil company California Olive Ranch.

Harvard’s natural resources assets have been among its worst performing asset classes in recent years, losing 12.4% in fiscal year 2019 and losing 2% in fiscal year 2018.

“We are obviously disappointed with persistent negative returns in this legacy part of our portfolio,” Narvekar said in last year’s message from the CEO. “Furthermore, we are pleased to have completely rebuilt an impressive team to manage this portfolio.”

According to a company spokesperson, the name Solum comes from a Latin term used in farming science that refers to the top layer of soil connecting the roots below the ground with the plants that grow above it.

“Functionally, it’s one of the most important factors in stimulating plant growth,” said the spokesperson. “Not only is soil the essence for life, but it’s also the foundation for many of the goods Solum invests in.”

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