Former prime minister Julia Gillard to chair $2bn energy transition fund backed by David Di Pilla’s HMC Capital

Former prime minister Julia Gillard will chair a new energy transition fund backed by David Di Pilla’s HMC Capital.

Julia Gillard will chair a new $2bn energy transition fund backed by David Di Pilla’s HMC Capital. Picture: Matt Loxton

Former prime minister Julia Gillard will chair a new $2bn energy transition fund backed by David Di Pilla’s HMC Capital, as the merchant banker’s galaxy of investment funds and related satellites makes its pitch in the renewables sector.

In a statement to the ASX late on Monday, HMC Capital announced Ms Gillard had agreed to chair the newly created HMC Capital Energy Transition Fund, which will begin raising funds later this year to deploy into a portfolio of assets across the energy value chain, including wind, solar, battery, bio-fuels and emerging technologies.

The new fund is part of the growing stable of investment funds run by Mr Di Pilla’s HMC Capital, which has also pushed into property, technology and takeover opportunities.

The new fund will be launched in the coming months with the HMC group in due diligence across a number of investment opportunities that will form the basis of a seed portfolio of assets, HMC Capital said in a statement.

“Over the medium term, the Energy Transition Fund, will aim to build a portfolio of 15GW across the energy value chain and will take an innovative approach to managing market and contracting risk through partnerships with leading commercial and industrial energy users,” it said.

Fund raising will commence in the second half and seek to raise up to $2bn from institutional and wholesale investors.

“I am excited and honoured to be appointed chair of HMC’s Energy Transition Fund. Its design and HMC’s investment management capabilities will position the fund to be a genuine driver of Australia’s transition to zero net carbon by 2050,” Ms Gillard said.

“It is in our nation’s interests to better harness our abundant opportunities in solar, wind and other renewable sources of energy. In addition, our nation has made commitments to the world on combating climate change, which we need to honour.

“To create a clean energy future we must urgently unlock the full potential of private investment and business acumen. Based on HMC’s significant achievements to date, I have great confidence that the fund I will chair has the ability to make a genuine impact, while delivering for investors at the same time.

“As Prime Minister, I devoted a great deal of my and my government’s energy into fighting climate change and this new role is a continuation of that commitment,” she said.

HMC Capital chief executive Mr Di Pilla said his firm believes there is a substantial investment opportunity in energy transition which has not yet been properly defined for investors, let alone captured.

“We are absolutely delighted that a person of Julia Gillard’s global standing and experience has agreed to chair our new fund in this sector.

“She brings deep insights, policy experience and relationships which will be invaluable to HMC as we launch and then grow the Energy Transition Fund.

“We are also well progressed identifying further advisory board members for the fund and in assembling a specialist team led by former QIC Global Infrastructure Partner, Angela Karl.”