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CIP kicks off third fund with $1.3bn raised

The vehicle, which has already collected about 60% of its predecessor’s total, says it has several ‘exclusive investment opportunities’.

Danish fund manager Copenhagen Infrastructure Partners has launched a third energy fund, attracting Dkr8.8 billion ($1.3 billion; €1.2 billion) from a group of anchor investors.

The new 20-year buy-and-hold fund has been backed by Danish pension funds DIP, PensionDanmark and Lægernes Pension as well as Norwegian counterpart KLP. Christian Skakkebæk, senior partner at CIP, told Infrastructure Investor it would be looking to raise funds in the region of €3 billion over the next six to nine months.

CIP is also in discussions with “a larger group of prominent investors”, including those that invested in CIP III’s Dkr14.7 billion predecessor. CIP II was backed largely by Nordic pension funds, with the European Investment Bank and an unnamed UK pension fund also among the LPs. The UK’s Haringey Pension Fund has considered investing in the third fund but is yet to disclose its decision.

CIP said the vehicle would continue to have the renewables focus displayed by CIP II, which backed developing offshore wind projects in the US, UK, Germany and Canada. The fund also invested in over 500MW of onshore wind in Texas and a biomass plant in the UK.

The firm also said its latest offering will look to invest in transmission systems and solar, with Skakkebæk explaining that solar's growth over the last few years means it has become more mature and competitive. The vehicle will focus on greenfield investments and CIP said it has already identified “attractive exclusive investment opportunities” alongside its industrial partners. As was the case with CIP's previous funds, investments will be a mixture of equity and junior debt.

“The energy infrastructure market currently shows an attractive growth due to the strong commercial breakthrough recently in several renewable energy technologies,” Skakkebæk added.