Croatia’s Mezzanine Partner launches €100mn "dark green" energy fund

The investment firm Mezzanine Partner has announced the launch of the €100mn Energy Adria Fund, the first "dark green" energy fund in Croatia. 

The fund is set to support renewable energy projects across the region, with a focus on solar and wind energy. 

The fund has already secured €50mn from the European Investment Fund (EIF) through the InvestEU equity program, which supports clean energy and infrastructure projects. Mezzanine Partner is now in talks with domestic institutional investors to match this amount. 

With an estimated capacity to generate over 200 megawatts of green energy, the fund is expected to deliver a return of 10-11% to investors.

The Energy Adria Fund is as Croatia’s first financial instrument classified under Article 9 of the EU’s Sustainable Finance Disclosure Regulation (SFDR). This classification — often referred to as "dark green" — denotes the highest level of sustainability. Dark green funds exclusively target investments that promote environmental or social sustainability, meeting rigorous standards set by the EU’s action plan for financing sustainable growth.

Unlike traditional funds, a "dark green" classification ensures that all investments within the fund are directly tied to measurable positive impacts, such as reducing carbon emissions or enhancing renewable energy infrastructure.

Croatia has made strides in renewable energy but still faces challenges in meeting its full potential. In 2023, renewable energy sources accounted for around 28% of the country’s total electricity production. Solar and wind power are the fastest-growing sectors, yet financing remains a significant hurdle for large-scale projects.

Mezzanine Partner is an investment firm known for its innovative financing strategies and dedication to supporting regional development. The firm specialises in mezzanine financing, a hybrid model that combines elements of debt and equity, offering businesses the flexibility to grow without relinquishing full ownership.

Earlier this year, the firm launched the Croatian Mezzanine Debt Fund, aimed at bolstering small and medium-sized enterprises.

"With this fund, we are enabling projects that wouldn’t otherwise have access to the necessary capital," stated a spokesperson for Mezzanine Partner. "The benefits extend beyond financial returns, contributing to Croatia’s environmental goals and its integration into Europe’s clean energy network."