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 fast-growing major new economies primarily in Asia and Latin America.
The new fund reached a first close of USD 700m on May 9, 2019 with commitments from cornerstone investors PensionDanmark (PD), Arbejdsmarkedets Tillægspension (ATP), Kommunal Landspensjonskasse (KLP), and Lægernes Pension. The fund 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,” says Jakob Baruël Poulsen, Managing Partner in CIP.
”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,” says Torben Möger Pedersen, CEO at PensionDenmark
Whereas PD, Lægernes Pension, and KLP are also cornerstone investors in other CIP funds, ATP is a new cornerstone investor with CIP.
“We are delighted to invest into CIP’s New Markets Fund. This investment fits well with our ambition to create strong returns to our members based on sustainable investments,” says Ulrik Dan Weuder, Head of Global Direct Investments in ATP.
Lægernes Pension and KLP have invested with CIP since 2014.
Harald Koch-Hagen, Senior Vice President Risk and Asset Allocation in KLP elaborates: “Our experience with CIP from our investments in the developed market funds is very good. We have full confidence in their ability to replicate this success in a number of fast-growing economies outside the current core developed markets. This new fund is also a great opportunity to expand our commitment to catalyse investment in renewable energy infrastructure in fast-growing economies in Asia and Latin America.”
“Lægernes Pension has invested alongside CIP for the past five years in profitable and sustainable infrastructure projects in developed markets. We look forward to transferring that knowledge into emerging markets,” says Chresten Dengsøe, CEO at Lægernes Pension.
Renewables investments in the fast-growing new major economies
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.
“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,” adds Jakob Poulsen.
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 with extensive energy and M&A experience in Asia and Latin America as well as certain countries in Eastern Europe, Middle East, and Africa. The New Markets Fund investment team 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. Mr. Holst will be joined by a group of senior professionals recently recruited from leading institutions to join CI NMF I, as well as current CIP team members.
“CI NMF I combines some of the industry’s most experienced investors with CIP’s proven ability to design, construct and commission world class projects. Together we will deliver cost effective clean energy infrastructure to these dynamic, high growth markets. The CI NMF I strategy is right for our time,” noted Niels Holst.
The New Markets 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.
With the addition on CI NMF I, CIP has five funds under management with total commitments of EUR ~7.5bn. The existing funds CI I, CI A, CI II, and CI III focus on Western Europe and North America. The New Markets Fund focuses on fast growing major economies, primarily in Asia and Latin America.
About Copenhagen Infrastructure Partners
Copenhagen Infrastructure Partners P/S (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 has approximately 110 employees and offices in Copenhagen, Taipei, New York, Tokyo, Utrecht, and London.
CIP manages six funds and has more than EUR 8 bn under management. CI I, CI A I and CI A II have PensionDanmark as founding- and sole investor. CI II has 19 Danish and international institutional investors and CI III has 42 institutional investors from the Nordics, Continental Europe, the UK, Israel, Asia, Australia, and multi-lateral organizations e.g. EIB. CI NMF I has 15 investors from the Nordics and Continental Europe.
CIP was founded in 2012 by senior executives from the energy industry in cooperation with Pension Denmark.