Copenhagen Infrastructure Partners has finalised fundraising for the second ‘vintage’ of its Growth Markets Fund, GMF II. The fund targets large-scale energy infrastructure projects in 15 select high-growth, middle-income markets across Eastern Europe, Asia, and Latin America.
GMF II is nearly triple the size of MMF I, with USD3 billion in commitments to the fund and associated vehicles. The fund is said to be already delivering strong performance in the form of total value exceeding paid-in capital at final close and USD 1.6 billion committed across nine investments. Recent highlights include:
- Commissioning of the largest standalone battery project in Chile, constructed below budget;
- Commencing construction on Mexico’s first large-scale solar and battery storage projects after securing the largest capacity under the recent binding planning framework issued by the Mexican government;
- Reaching financial close on the onshore wind project Pestera II, one of the largest renewable energy investments in Romania.
Niels Holst, partner and co-head of Growth Markets Funds at CIP, said: “Reaching a USD 3 billion final close and tripling the fund size compared to our predecessor fund is a strong validation of our growth markets strategy and of investors’ confidence in our ability to originate, develop, and build large-scale renewable energy projects. For GMF II, we have been successful in attracting a diverse group of LPs [limited partners, ie passive investors] including sovereign wealth funds, pension funds, impact-focused family offices, and development finance institutions (DFIs), in addition to re-ups from existing LPs, expanding our outreach across Asia, the Middle East, and North America.”
The strong investor interest in GMF II reflects the attractive fundamentals, the need for energy in the target markets, and the team’s proven track record in the first vintage of the fund says CIP. GMF I is now expected to deliver approximately 8.7 GW of critical energy in India and South Africa across 50 projects or more.
Ole Kjems Sørensen, partner and co-head of Growth Markets Funds at CIP, said: “With GMF II, we are building on our track record and expanding our ability to connect capital with high-quality renewable energy projects in select growth markets that have a fundamental need for new and reliable energy infrastructure.”
