Copenhagen Infrastructure Partners (CIP) has established a new fund to invest in fast-growing renewable energy markets in Asia and Latin America.
CIP says that the new fund, Copenhagen Infrastructure New Markets Fund I, reached a first close of $700 million in May 2019 with commitments from 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 $1 billion within the next nine months.
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. It 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.
“Obtaining first close commitments of $700 million 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,” said Jakob Baruël Poulsen, Managing Partner in CIP. “The [new fund] 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.”
“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,” said Torben Möger Pedersen, CEO at PensionDenmark. “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.”