London-based Earth Capital Partners (ECP) has reached first close on its inaugural renewable energy fund, launched at the end of November 2009. Final close for the fund is scheduled for November 2010.
The fund, ECP Renewable Energy Fund I, received an undisclosed seed investment from a pension fund. The fund is targeting a final capitalisation of €750 million.
The fund plans to invest in solar and waste energy projects across Europe, the Middle East and North Africa with several pension funds doing due diligence on the fund. It is targeting returns of 10 percent and will have a 20-year life-cycle with a hard break at year 10.
The management fee is 2 percent and performance fee is 20 percent. Northern Trust has been administrating ECP’s fund platform since early this year.
Investment in the renewable sector is on the rise with the International Energy Association predicting cumulative growth in renewable energy investments to reach $5.5 trillion by 2030, or $229 billion in annual growth.