The CEFC is sharpening its focus on decarbonization across Australian mid-market infrastructure assets, investing up to $80 million equity into the $1.4 billion PEP Secure Assets Fund II (SAF II). Pacific Equity Partners (PEP) is one of Australasia’s oldest private markets fund managers, with A$8.7 billion in assets under management.
The PEP SAF II portfolio will target value-add mid-market infrastructure and infrastructure-like businesses, including assets with secure or contracted base cashflows in areas from healthcare and energy to transport and data centers.
As part of its investment strategy, in addition to pursuing underlying growth, SAF ll will work with investee companies to understand their carbon footprint and identify decarboniaztion pathways in line with reducing scope 1 and 2 emissions by 50 per cent by 2030 – and to set targets for net zero scope 1 and 2 emissions by 2040.
PEP also plans to work with these companies to address scope 3 supply chain emissions, in line with scenario modelling for a 1.50°C world by 2050. PEP will also look to drive further decarbonisation efforts across its existing funds as it works with companies seeking to meet the challenges of lowering their emissions.