CIP’s Green Fund Filling Up

Business & Finance

Copenhagen Infrastructure Partners’ new fund Copenhagen Infrastructure III had its third close on Thursday, 13 July with total commitments reaching EUR 1.9 billion after four months of fundraising.

Illustration. Image source: Veja Mate

CIP initiated fundraising for the new fund in March with a target fund size of EUR 3 billion. The fund will be open for investor subscription until December 2017. Less than half way through the fundraising period CIP has achieved almost two thirds of the targeted investor commitments for the new fund.

“Reaching almost EUR 2.0 bn in commitments is an important milestone in the fundraising process and a proof of investor confidence in CIP. Most investors in the existing CIP-managed funds have decided to invest in the new fund, which has also obtained commitments from new investors. We are grateful for the investor commitments received and look forward to welcoming the other prominent institutions, which have also indicated their interest to invest, during the coming months,” said Jakob Baruël Poulsen, Managing Partner in Copenhagen Infrastructure Partners.

The new fund has so far received commitments from primarily Nordic and UK-based investors, but CIP expects to receive commitments from a broader international group of prominent investors in the coming closings.

The investment strategy of CI III will be a continuation of the predecessor fund, CI II, which committed EUR 2 billion to energy infrastructure projects in 24 months.

CI III expects to invest in primarily large scale offshore wind, onshore wind, solar PV, and biomass / waste-to-energy, transmission / distribution in primarily Northwestern Europe and North America.

CIP has secured CI III a strong pipeline of investment opportunities and the fund has ownership or exclusivity rights to nine energy infrastructure projects currently being developed towards financial close and comprising approximately EUR 1.5  billion of potential investments, te company said.

“The investor commitments of almost EUR 2.0 bn and the positive indications from multiple new investors obtained after only 4 months of fundraising highlight the attractiveness of the CI III pipeline and confirm the relevance of CIP’s investment strategy and approach to energy infrastructure investments,” said Poulsen.

CIP plans to have the next CI III closing in September 2017 with primarily international investors and finalise the fundraising process before year end.