Fund management firm Copenhagen Infrastructure Partners (CIP) has established a new fund to invest in greenfield renewable energy infrastructure primarily in Asia and Latin America, with expectations of reaching US$1 billion by the final close.
The Copenhagen Infrastructure New Markets Fund I K/S (CI NMF I) reached a US$700 million first close on 9 May with commitments from cornerstone investors PensionDanmark (PD), Arbejdsmarkedets Tillægspension (ATP), Kommunal Landspensjonskasse (KLP), and Lægernes Pension. Three of the organisations have also been cornerstone investors in other CIP funds, but ATP is a new cornerstone investor.
The fund will also focus on certain countries in Eastern Europe and Africa.
“Obtaining first close commitments of US$700m from a group of leading Nordic investors is an important proof of investor confidence in CIP’s approach to energy infrastructure investments and a testament to the track record built with CIP’s Western Europe and North America focused energy infrastructure funds CI I, CI II, and CI III,” said Jakob Baruël Poulsen, managing partner in CIP. ”The CI NMF I is a significant step in CIP’s continued expansion as it broadens our offering to also include infrastructure funds targeted at fast-growing major new economies.”
”CIP has come a long way since PensionDanmark and CIP’s senior partners established CI I back in 2012 with PD as sole and founding investor. CIP has demonstrated its ability to develop and construct renewable infrastructure projects in Europe and America on time and budget and has delivered very attractive returns to its investors. We see the New Markets Fund as a natural next step to broaden the investment universe to new markets in Asia and Latin America where there is a significant need for renewable energy investments that represents attractive investment opportunities for CIP and its investors,” said Torben Möger Pedersen, CEO at PensionDenmark
CI NMF I will apply the same value creation and de-risking approach as CIP’s existing OECD-focused funds and invest in offshore and onshore wind, solar PV, biomass and waste-to-energy and transmission grid systems among others.
CIP is a fund management company focused on energy infrastructure including offshore wind, onshore wind, solar PV, biomass and energy-from-waste, transmission and distribution, and other energy assets like reserve capacity and storage. CIP manages five funds and has ~€7.5bn under management.
Last August, CIP started construction on two solar projects totalling 300MWac in the US.