Danish private equity firm Copenhagen Infrastructure Partners (CIP) is aiming to manage the world’s largest renewable energy fund in its class by closing the first part of its flagship CI V facility with capital commitments of €5.6 billion. CIP said that its fifth CI fund puts it on track to reach its target fund size of €12 billion.
Ambitious investment plans
The CI V fund attracted a large group of leading institutional investors across continental Europe, the Nordics, the UK, and the Asia-Pacific region, while some existing investors had also shown an appetite for more exposure.
The investment strategy is a continuation of the predecessor flagship funds CI I, CI II, CI III, and CI IV. The fund will focus on greenfield investments within large-scale renewable energy infrastructure. It has a global reach and intends to diversify investments across technologies such as contracted offshore wind, energy storage, onshore wind, and solar in low-risk OECD countries in North America, Western Europe, and Asia Pacific.
Based on the current portfolio, CI V targets to add an estimated 20 GW of new clean energy capacity to the grid, enough to power more than 10 million average households with renewable energy, which corresponds to an annual CO2 avoidance of 15 million metric tons.
The large seed portfolio provides significant optionality and flexibility in project selection and portfolio construction, as well as investment execution robustness and visibility. In June, CI V took its first final investment decision on a +400MW onshore wind project in the US, expected to start construction in the coming months.
“We’re delighted by the continued trust in CIP from our existing investors, and are pleased to welcome the many new investors to our renewable energy platform. Reaching nearly EUR 6 billion at first close is a testament to the importance of the fund, and the confidence placed in our industrial approach to energy infrastructure investments. With its greenfield focus and large and diversified portfolio, CI V has the potential to significantly contribute to, and accelerate the energy transition on a global scale, while generating strong returns for our investors,” said Jakob Baruël Poulsen, Managing Partner at CIP.
“We believe the market timing for investment of CI V is favourable. The strong and accelerating demand for new renewable infrastructure to secure energy independence and deliver on ambitious climate pledges creates many new investment opportunities. The fund and CIP are well-positioned to capture the attractive market opportunities, backed by our strong and extensive track record, our large team of experienced industrialists, and our ownership of one of the world’s largest portfolios of greenfield renewable energy projects. Our large investment pipeline and broad capabilities across all major renewable technologies and presence in all key markets enable us to select the best projects for the fund and to build a well-diversified portfolio,” stated Poulsen.
