Copenhagen Infrastructure Partners’ new fund, Copenhagen Infrastructure New Markets Fund I (CI NMF I), reached final close on November 18, 2019 with LP commitments of USD 1.0bn exceeding the target fund size.
“We are very pleased to reach a final close of CI NMF I with a mix of existing and new blue-chip institutional investors committing to the fund. Exceeding the fund’s target size in less than 6 months from first close is an important proof of investor confidence in CIP’s approach to energy infrastructure investments and a testament to the track record established with CIP’s Western Europe and North America focused energy infrastructure funds CI I, CI II, and CI III,” says Jakob Baruël Poulsen, Managing Partner in CIP. “With a total commitment of USD 1.0bn and CIP’s existing energy-focused platform the fund is in a strong position to tap into the attractive investment opportunities in energy infrastructure in the new and fast-growing major economies in Asia and Latam.”
CI NMF I will primarily invest in greenfield renewable energy infrastructure projects in the fast-growing economies across Asia and Latin America as well as certain countries in Eastern Europe where CIP see scale, growth, and liquidity. The fund 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. With a term of ten years and a “build-and-exit” strategy, the fund will participate in completing late stage development, finance construction, and ultimately divest once assets are operational.
“We look forward to creating value for our investors, project owners and local communities through the fund’s investments. The investment pipeline includes several attractive renewable energy infrastructure project opportunities across all main target geographies and technologies, and the fund is well on track to make its first final investment decision and investments in 2020,” says Niels Holst, Partner in CIP and Head of the New Markets Fund.
The final close in November follows a successful first close at USD 700m in May 2019 with the four cornerstone investors, PensionDanmark, Arbejdsmarkedets Tillægspension (ATP), KLP, and Lægernes Pension & Bank. The CI NMF I obtained commitments from institutional investors primarily comprised of pension funds, insurance companies, and family offices, and broadens CIP’s investor base with (ATP), the Danish Export Credit agency (EKF), and a prominent group of German and Austrian institutions. With the final close on CI NMF I, CIP has total commitments of almost EUR 8 bn across five funds.
The existing flagship funds CI I, CI A, CI II, and CI III focus on energy infrastructure in Western Europe, North America, and developed Asia-Pacific. CI I, CI A, and CI II are fully committed to investments and the most recent EUR 3.5bn fund CI III, which had final close in March 2018, is expected to end its investment period in 2020. All funds are performing well and expected to deliver an attractive risk-adjusted return well above target.
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.