CIP targets new markets with $1bn fund

A group of Nordic investors has helped the Danish fund manager reach a $700m first close on New Markets Fund I, CIP’s first emerging markets-focused vehicle.

Copenhagen Infrastructure Partners is venturing beyond North America and Western Europe with the launch of a fund for which it aims to raise $1 billion in the next nine months.

The Copenhagen Infrastructure New Markets Fund I reached a first close of $700 million earlier this week after securing commitments from four cornerstone investors: PensionDanmark, KLP, Lægernes Pension – which have also committed to CIP’s previous funds – and ATP.

The new vehicle will invest in greenfield renewable energy projects, primarily “in the fast-growing economies” of Latin America and Asia, as well as in some countries in Eastern Europe and Africa, the Danish fund manager said in a statement.

It will have a term life of 10 years and follow a “build-and-exit” strategy, exiting investments once plants become operational. According to the statement, the fund will invest across a range of renewable technologies, including onshore and offshore wind, solar, biomass, waste-to-energy and transmission grid systems.

It did not specify targeted returns or whether will be higher than the 8 to 10 percent the firm targets through CIP III, which reached final close on its hard-cap of €3.5 billion in April 2018. CIP did not respond to several requests for comment.

In line with expanding its investment focus, CIP has also expanded its team. Niels Holst, who has been appointed partner, joined the fund manager from Capricorn Real Assets, a financial advisory firm where he served as managing director. He will lead the New Markets Fund team, which will include current CIP team members as well as “senior professionals recently recruited from leading institutions”, the firm said without providing further detail.

Founded in 2012, CIP has five funds under management – including CI NMF I – with commitments amounting to approximately €7.5 billion. While the firm has invested primarily in North America and Western Europe, it has also invested in Taiwan’s offshore wind sector and in Australia.