Capital Dynamics seeks fortune Down Under

The firm has hired Channel Capital to tap the $1.6trn in institutional capital held by Australia’s superannuation funds.

The clean energy infrastructure team at Capital Dynamics has hired Australian investment matchmaker Channel Capital to help the firm access Australia’s institutional investor market.

Capital Dynamics, a Switzerland-based asset manager currently raising a $1 billion clean energy fund, is seeking to tap the pools of capital held by Australia’s superannuation funds.

At $1.6 trillion in 2016, the country has the fourth-largest institutional market in the world, according to Willis Tower Watson. It is also one of the fastest-growing markets, with a 9.5 percent, five-year compound annual growth rate.

Capital Dynamics’ clean energy team manages around $3 billion of assets generating 3.1GW of capacity. It’s invested in solar, wind, biomass, conventional gas generation and waste gas-fueled power generation in North America and Europe.

“CD CEI is thrilled to be able to demonstrate our expertise in this market to Australia’s most important institutional investors through our partnership with Channel Capital,” said John Breckenridge, the firm’s head of clean energy infrastructure.

Channel Capital is a Sydney-based company that helps fund managers increase their exposure to institutional investors in Australia. “We develop and coordinate a capital-raising strategy tailored to each of our partners,” the company’s website says.

Capital Dynamics at one point ran an office in Brisbane, but in 2015, after fully investing its first clean energy fund, decided to close it to “ensure its business is optimised to meet its clients’ investment objectives.”

In August, the firm agreed to pay the US Securities and Exchange Commission $275,000 to settle charges it had improperly allocated $1.27 million in expenses to its former US Solar Energy Fund that Capital Dynamics should have covered itself.