BNP Paribas Spins Off Fund Manager Focused on Renewable Energy

BNP Paribas (BNP) SA, France’s biggest bank, will spin off its renewable energy fund in the wake of increased regulation.

The managers of the 437 million-euro ($581 million) fund, which will be renamed as Glennmont Partners, agreed to acquire the London-based fund manager once regulators approve the deal. BNP Paribas will remain an investor and provide support through a distribution agreement, Glennmont said today in a statement. Terms weren’t disclosed.

“The new structure will allow for more agile decision- making in the rapidly-growing alternative energy sector, as well as an increased alignment between managers’ and investors’ interests,” Joost Bergsma, the fund’s chief executive officer, said by phone. The spinoff follows similar deals in which large banks have retreated from private equity units as regulation increases, he said.

The fund has invested more than 1 billion euros in 12 clean energy assets since 2007. It has interests in projects across Europe with more than 300 megawatts in capacity.

To contact the reporter on this story: Marc Roca in London at mroca6@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net