Zencap raises €180M first close for third European energy transition fund

What's the deal? Zencap Asset ManagementDealroom has a profile for this one. Try Dealroom →, a private debt subsidiary of Ofi InvestDealroom has a profile for this one. Try Dealroom →, has raised €180 million in the first close of Zencap European Sustainable Transition III (ZEST III), a junior debt fund financing mid-market energy transition projects across Europe. The vehicle targets a final capitalisation of €300 million to €400 million. The European Investment Fund is among the initial backers.

What's the endgame? ZEST III provides junior debt of €10 million to €40 million per deal, targeting mid-sized companies and assets. Capital is earmarked for renewable generation, energy storage, biogas, and green mobility infrastructure aligned with the European Green Deal.

Why now? The firm frames the fund as more than a climate play. "Beyond the climate challenge, the energy transition is today a condition of European sovereignty," Zencap said (translated from French), citing the need to secure local supply chains and industrial cost competitiveness.

The fund tracks the carbon footprint and green asset ratio of its portfolio companies, extending the strategy of its predecessor while sharpening its focus on extra-financial metrics.

The signal: ZEST III's opening haul trails the €255 million raised by its predecessor, ZEST II, but positions Zencap in a mid-market segment where bank lending remains tight. As parent Ofi Invest managed €3.1 billion in committed capital and advisory mandates at the end of 2025, institutional appetite for junior infrastructure debt — led here by the European Investment Fund — suggests the transition-finance thesis still draws big backers.

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