Copenhagen Infrastructure New Markets Fund I K/S (CI NMF I), the newly established fund of Copenhagen Infrastructure Partners (CIP), which will invest in renewable energy infrastructure projects, has reached a first close of $700m.
The CI NMF I fund has secured commitments from PensionDanmark (PD), Arbejdsmarkedets Tillægspension (ATP), Kommunal Landspensjonskasse (KLP), and Lægernes Pension. The fund is expected to achieve a final close with total commitments of about $1bn within the next nine months.
CIP stated that this fund will target the investments in renewable energy projects across the emerging markets in Asia and Latin America along with certain countries in Eastern Europe and Africa with scale, growth and liquidity.
It will apply the same value creation and de-risking approach, similar to CIP’s existing OECD-focused funds and invest in offshore and onshore wind, solar photovoltaics, biomass, waste-to-energy and transmission grid systems among others.
The new fund will have a term of ten years and will apply a ‘build-and-exit’ strategy in which the fund will focus mainly on green projects’ construction and will exit the investments, once the plants are operational.
CIP managing partner Jakob Baruël Poulsen said: “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.”
The Danish fund management company has added an investment team for the new markets fund with extensive energy and mergers and acquisitions (M&A) experience across Asia and Latin America along with certain countries in Eastern Europe, Middle East and Africa. The new fund will be headed by newly appointed CIP Partner Niels Holst.
Niels Holst said: “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.”