Real Asset Energy Fund III is a long term Fund investing in Renewable Power Production with high yield bond-like returns.
RAEF invests in one class of Real Assets (power plants generating energy from renewable sources), and hold the assets until the end of their industrial life (typically 20 years).
The Fund will invest in 25-30 medium sized power plants in 5 to 6 key strategic markets (including Germany, USA and Italy) to diversify risk and optimize returns. Investments are focused mainly on fuel independent, mature technologies (such as wind and solar) that have stable revenues and limited operating complexity.
RAEF’s team actively manages the assets to obtain a stable flow of distributions that will be passed on to investors.
RAEF aims to pay an annual dividend of 8-10% whilst protecting the principal investment, which will be returned to investors through the Fund’s life.
Due to it’s long term strategy RAEF is not forced to sell assets after 7-10 years therefore is almost entirely uncorrelated with the market, unlike the mainstream asset classes normally preferred by long term investors: Infrastructure, Real Estate, Bonds and Equities.
The Fund has been designed specifically to meet the requirements of institutional investors including Pension Funds, Insurance Companies, Sovereign Wealth Funds, as well as large Family Offices, Endowments and Foundations that are risk averse and require stable long-term returns that match their investment horizon. Infact RAEF, compared to the Government bonds of the countries in which it invests, will aim to pay a hefty premium for a risk that is not too different.
RAEF also offers an annual window of liquidity to meet unexpected needs of investors over the 20 year period.