Copenhagen Infrastructure Partners (CIP), a Danish fund management company that specializes in investing in the energy infrastructure sector, has reached a €1.5 billion first close on Copenhagen Infrastructure IV (CI IV), which is set to become the largest global fund within renewable energy infrastructure investments with a target fund size of €5.5 billion.
The fund is expected to achieve capital commitments of €5-7 billion and invest €10-14 billion in greenfield renewable energy infrastructure across North America, Western Europe, Asia and Australia. The investment strategy of CI IV will be a continuation of the successful CI I, CI II and CI III funds.
“We are very pleased to reach first close of CI IV with a mix of existing and new blue-chip institutional investors committing to the fund. We are honored by the continued investor confidence in CIP’s approach to energy infrastructure investments and look forward to continuing to create value for our investors, project owners and local communities through the fund’s investments,” says Jakob Baruël Poulsen, managing partner in CIP.
“The market timing is favorable for greenfield renewable infrastructure investments, and the fund and CIP are well positioned to capture the attractive market opportunity with significant visibility of the investment pipeline and a high degree of execution certainty delivered by a large team of experienced industrialists,” he adds.
The new fund reached the first close of €1.5 billion with capital commitments from a group of institutional investors, including the two Danish pension funds PensionDanmark and AP Pension, KLP from Norway, as well as pension and life companies and large family offices. Several other prominent institutional investors are in the process of committing to CI IV, including investors from among the Nordics, Continental Europe, the U.K., Israel, North America, Asia and Australia.
The investment strategy is a continuation of the successful predecessor funds CI I, II and III, and is tailored to institutional investors with a long-term investment horizon. The fund will focus on greenfield investments within core energy infrastructure. It has a global reach and will diversify investments across technologies such as contracted offshore wind, onshore wind, solar PV, transmission, storage, waste-to-energy and biomass assets in low risk OECD countries in Western Europe, North America and the Asia Pacific.
Following first close of CI IV, CIP has seven funds under management with total commitments of around €9.5 billion. The new fund CI IV has a target fund size of €5.5 billion and final close is expected during the next nine months.
Bruun & Hjejle, Clifford Chance and Fried Frank act as legal counsel. Selinus, Eaton Partners and CFJC act as placement agents.