CIP hits €1.9bn third close for fund III

The Danish renewable energy fund remains on course to reach its €3bn target by the end of the year, with another close expected in September.

Danish fund manager Copenhagen Infrastructure Partners has reached a third close on its third renewable energy vehicle, garnering commitments of about Dkr14 billion ($2.1 billion; €1.9 billion).

The fund, launched in March this year, is now just approximately Dkr8 billion short of its final target following backing from Nordic and UK-based institutional investors. It is due to close in December.

The vehicle received anchor investment totalling Dkr8.8 billion from Danish pension schemes PensionDanmark, Lægernes Pension, JOP and DIP, as well as Norwegian insurance firm KLP. Known commitments since include a £35 million ($44.5 million €39.9 million) investment by the UK’s Haringey Pension Fund, while the European Investment Bank last month revealed it is considering a Dkr750 million pledge to the fund.

Targeting returns between 7 percent and 9 percent, the fund has ownership or exclusivity rights to nine projects worth €1.5 billion of its investments, including three offshore wind sites in Taiwan. The fund will also seek to deploy capital in the onshore wind, biomass, solar and transmission sectors, comprised of both equity and mezzanine debt contributions.

Jakob Baruël Poulsen, CIP’s managing partner, said most of the investors in the fund’s predecessors have decided to invest in the third vehicle and a third close is expected in September. The previous attempt closed on €2 billion in July 2015 and was backed by the anchor investor group as well as 14 other LPs including Nordea, Nykredit, PFA and T&W Holding. Poulsen said the new commitments are expected to come from “a broader international group” of investors.

“We look forward to welcoming the other prominent institutions, which have also indicated their interest to invest, during the coming months,” he said.