Copenhagen Infrastructure Partners has officially launched its debut infrastructure debt fund, aiming to raise €1 billion to invest in both greenfield and brownfield projects in offshore and onshore wind, solar PV, biomass, storage and transmission assets.
“We feel the opportunity in the market and in subordinated debt is there now for us to expand our product offering at this time,” CIP partner Jakob Groot told Infrastructure Investor. “The skillset CIP has built in our equity platform we feel is a skillset we can apply to sponsors in developing their own projects by providing capital. We think we can deliver on that.”
CIP has already secured €320 million in seed capital for CI Green Credit Fund I from “a small group of leading investors including a large Danish pension fund and Singlife with Aviva, a Singapore-based financial services company”, the firm said in a statement.
The fund will focus primarily on direct investments, but it will also be able to invest in risk-sharing transactions. For those transactions, CIP has partnered with Whitecroft Capital Management, a London-based specialist manager dedicated to bank capital opportunities.
From a geographic perspective, the fund will focus on Europe, North America and select OECD markets in Asia-Pacific, as well as Singapore and Taiwan, said Groot, who will co-head the fund along with Nicholas Blach-Petersen.
The firm has also hired a team of project finance and credit specialists dedicated to this new strategy, including Daniele Tabacco in London and Sameer Thanawala in New York, who joined CIP in the latter half of last year, to focus on origination.
Following the seed close of CI Green Credit Fund I, the firm has nine funds under management, with commitments of around €16 billion. Nearly half of that total comes from CIP IV, which the firm closed last April on €7 billion, making it the largest ever greenfield renewable energy fund and the second largest sector-specific fund of 2021, according to our full-year fundraising report.