Dutch investment manager APG has invested €250m of growth capital in Driveco, a French electric vehicle charging company, on behalf of Dutch pension funds ABP and PPF.

The transaction represents the largest fundraising in the electric charging point sector in France.

Driveco has more than 8,000 charging points in operation or under construction, with the firm aiming to operate over 60,000 charging points in Europe by 2030.

It estimates that this will avoid 30 million tons of CO2 emissions a year, in line with the EU’s ‘Fit for 55’ objectives.

As a result of APG’s investment, Driveco has secured the funding to continue developing its network of charging stations in France and Belgium, as well as expanding to Germany, Spain, Italy, Switzerland and the Netherlands.

The investment has been structured through a combination of common equity and quasi-equity, as APG portfolio manager, Amanda Vidal, explained: “The choice of structure for the funding of the transaction manages to secure an attractive risk-adjusted return for APG also in the event of less favourable market developments while retaining strong upside potential.”

The completion of the deal is subject to regulatory approval and is expected to take place during the first half of 2023.

Commenting on the announcement, APG senior portfolio manager, Carlo Maddalena, said: “This investment represents another milestone for APG and its pension fund clients ABP and PPF to significantly reduce carbon emissions worldwide and support the development of infrastructure solutions for the energy transition.

“Driveco has a proven track record of over 10 years in the sector and is recognised by the users as one of the best charging operators thanks to its industry leading availability rate.

“The company is well positioned to become a key contributor to the ongoing electric vehicle revolution in France and in neighbouring European countries over the coming years. Institutional investors are natural owners of these assets given their strong additionality contribution to the energy transition and overall value creation.”

Vidal added: “The path to net zero requires investment in multiple proven decarbonisation solutions that will need to be scaled up to support the transition.

“The electric charging infrastructure sector has grown rapidly over the past years and continues to show strong momentum on the back of renewed commitments from governments and carmakers to accelerate the transition to decarbonised transportation.

“APG’s backing of Driveco is a testament to management’s excellent multi-year track record, which is amongst the best in the sector.”

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