Future Group invests in energy transition with fresh mandate

Future Group has invested an undisclosed sum in I Squared Capital's Energy Transition Infrastructure Fund (ETIF) to fast-track its energy transition effort, while seeking exclusive opportunities outside the Australian market.

ETIF supports climate change mitigation by investing in infrastructure businesses and assets key to the energy transition globally, providing local institutional investors exposure to parts of the energy transition where policy settings and technology adoption differences create opportunities not currently available in the Australian market, it said.

Currently, I Squared's energy transition investments across its equity funds currently comprise 30+ investments around the world, including assets such as Absolute Energy in Italy, Aurora Utilities in the UK and a clean fuels terminal in the US, the firm said.

Commenting, Future Group deputy chief investment officer David Allen said the exposure to global markets is an important step in advancing the energy transition.

"As Australia's first superannuation fund to invest in I Squared's Energy Transition Infrastructure Fund we are excited about the opportunity and look forward to partnering with I Squared to accelerate the energy transition in international markets," Allen said.

Meanwhile, I Squared chief investment officer Gautam Bhandari added: "Future Group's commitment reflects growing global momentum behind the energy transition and the importance of scalable infrastructure solutions."

"We look forward to partnering with Future Group to expand access to critical assets and drive meaningful progress toward a lower-carbon future."

Since its inception in 2012, I Squared has been investing across the energy transition value chain, deploying over $10 billion (US$7.2bn) across energy transition assets globally. The firm current has some $76 billion (US$55bn) in assets under management and is investing across more than 115 countries.

It expanded to Australia with the opening of a Sydney office in 2022 and welcomed managing director Rob Hamilton to oversee its client-relation management and capital raise across the region.

The announcement also comes after the infrastructure investor joined a bidding war against Pacific Equity Partners (PEP) for oOh!media, valuing the company at a $20 million premium over PEP's offer. However, both offers were subsequently shut down by the board of oOh!media.