BVT Unternehmensgruppe, a company active in the energy and infrastructure sector since the 1980s, is expanding its portfolio with a new segment. With the introduction of the BVT Batteriespeicher Beteiligungen GmbH & Co. Geschlossene Investment KG, the asset manager is creating an opportunity for investors to invest in a key technology of the energy transition: battery storage. This strategic expansion addresses the increasing demand for electricity storage, which is being driven by the expansion of renewable energies.
Battery storage is essential to make the volatile generation of wind and solar energy flexibly available over time and to ensure the stability of electricity grids. This fundamental role, as well as the market's dynamism, offers economically relevant and socially significant prospects for investors. The new public AIF is open to both private and professional investors and allows participation from EUR 10,000 plus an issue surcharge.
Investment Strategy and Project Selection
The fund is designed as a 'blind-pool' fund and plans to acquire stakes in companies that build and operate electricity storage facilities and the associated infrastructure. Investments will primarily target battery storage projects that are in advanced development phases, are 'ready-to-build', or are already in the operational phase. An essential prerequisite for any investment is the existence of a secured grid connection and a firmly defined location.
- —Projects can be realised as 'standalone' storage units.
- —'Co-location' with existing energy generation plants such as photovoltaic or wind power plants is also possible.
- —Potentially, an attached charging infrastructure for electric vehicles can be integrated.
This flexible structure aims to utilise various business models and achieve diversification and optimisation of the fund portfolio. At least three participations in such battery storage projects are planned.
Partnership and Projected Returns
To ensure a precise selection of suitable projects, BVT is strategically cooperating with the Munich-based company VISPIRON ENERGY. VISPIRON ENERGY has expertise in renewable energies and has installed over 500 MWp of photovoltaic capacity and realised 200 MWh of grid-connected battery storage in Germany since 2009. This partnership secures BVT access to qualified investment opportunities; initial projects are already undergoing detailed review.
Fund revenues are generated through the purchase, storage, generation, and sale of energy. The resulting surpluses are distributed to the investment company. The sale of the participations is planned for the end of the projected fund term in 2034. Assuming a normal course of business, regular, usually annual, distributions to investors are expected from 2028. The Key Information Document forecasts an average annual return of approximately 6.5 percent (IRR after costs and before taxes) on the average committed capital for the moderate scenario, assuming the share is held until the end of the recommended holding period. Projected total distributions range between 42 percent (stress scenario) and 179 percent (optimistic scenario) of the issue price. In the moderate scenario, 146 percent of the issue price is projected. The issue price includes an issue surcharge of 3 percent of the subscribed limited partnership contribution.
