Copenhagen Infrastructure Partners (CIP) has reached a first close of $700 million with its new fund, Copenhagen Infrastructure New Markets Fund I K/S (CI NMF I), with investments from PensionDanmark, Kommunal Landspensjonskasse, Arbejdsmarkedets Tillægspension and Lægernes Pension. The Danish fund manager aims to reach $1 billion in its final close within the next nine months.
“Obtaining first close commitments of $700 million from a group of leading Nordic investors is an important proof of investor confidence in CIP’s approach to energy infrastructure investments,” said Jakob Baruël Poulsen, managing partner for 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.”
CI NMF I will invest in solar PV, offshore/onshore wind, waste-to-energy and biomass projects, as well as transmission grid infrastructure, according to an online statement. The fund, which has a term of 10 years, will primarily focus on greenfield investments in renewable energy infrastructure projects throughout Asia and Latin America. It will also target unspecified countries in Eastern Europe and Africa, mainly via a a “build-and-exit” strategy.
“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,” explained Poulsen. “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.”
CIP is establishing a new investment team to specifically focus on CI NMF I, comprised of investors with extensive experience in energy M&As throughout the world.
CIP now has five funds under management. Last year, it raised €3.5 billion to finance the development of solar, wind, biomass and geothermal projects across several markets. The fund’s final close surpassed its goal by €500 million.