CIP Sets Up New Markets Renewables Fund
Copenhagen Infrastructure Partners (CIP) has established a new fund, Copenhagen Infrastructure New Markets Fund I K/S (CI NMF I), which will invest in renewable energy infrastructure targeting primarily Asia and Latin America.
The new fund reached the first close of USD 700 million on 9 May and is expected to achieve its final close with total commitments of approximately USD 1 billion within the next nine months.
“Obtaining first close commitments of USD 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. 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,” said Jakob Baruël Poulsen, Managing Partner in CIP.
The New Markets Fund I will target greenfield renewable energy infrastructure projects in the fast-growing economies in primarily Asia and Latin America as well as certain countries in Eastern Europe and Africa with scale, growth, and liquidity. 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 said.
The fund has a term of ten years and will apply a “build-and-exit” strategy i.e. the fund will focus on greenfield projects, fund construction and exit the investments once plants are operational.
“There is a large and growing need for new energy infrastructure outside of North America and Europe, which are targeted by the existing CIP funds. The New Markets Fund will pursue the significant market opportunity in renewable energy infrastructure investments in the fast-growing economies primarily in Asia and Latin America, and exploit CIP’s existing industrial skills, networks and de-risking approach to create value for our investors,” Poulsen said.
In connection with the establishment of the fund, the CIP team has been expanded to include a dedicated investment team for the New Markets Fund which will be headed by newly appointed CIP Partner Niels Holst, who comes from a position as Managing Director in the financial advisory firm Capricorn Real Assets.