Danish fund manager Copenhagen Infrastructure Partners (CIP) has officially launched its second fund with initial commitments of DKK8 billion (€1.05 billion), as first reported by Clean Energy Investor.
The fund launch is backed by eight Danish institutional investors – DIP, JØP, Lægernes Pensionskasse, PBU, Nordea, Nykredit, PFA and PensionDanmark. The latter is by far the largest investor having committed DKK3.5 billion, or 44 percent, of the launch amount.
The 20-year buy-and-hold vehicle is open to investors until the end of the first quarter of 2015. It expects to hold a final close on between DKK10 billion and DKK12 billion and be fully invested within three years. Fund II will focus on biomass-fired power plants, electricity transmission grids and onshore and offshore wind power across Northern and Western Europe as well as North America.
CIP’s first fund should be fully invested by the end of this year. In contrast to Fund II, CIP’s debut offering only manages money on behalf of PensionDanmark. Having started with a seed commitment of DKK6 billion, the fund now manages DKK10 billion for the Danish pension.
CIP is run by four partners, all ex-employees of Dong Energy: Jakob Baruel Poulsen, Rune Bro Roin, Torsten Lodberg Smed and Christian Skakkebaek. PensionDanmark itself has an existing relationship with Dong, having worked on several wind deals with the company in the past.
Established in 1993, the €20 billion PensionDanmark manages labour market pensions on behalf of 640,000 public and private sector members.