EnerCap Capital Partners (EnerCap), the Prague-based fund manager, has announced that Polskie Inwestycje Rozwojowe (PIR) will be the cornerstone investor in the energy efficiency fund it is currently raising.
PIR was established under a Polish government initiative, the Polish Investments Programme, last year. The programme aims to provide funding to long-term infrastructure projects in Poland and catalyse new private capital investment in Polish infrastructure.
PIR has agreed to commit €40 million to the Exergy Energy Efficiency Fund (E3F), which has a target of €350 million. The fund is aiming to deploy half of the capital it raises in Poland and the rest elsewhere in Central Europe.
The ten-year closed-ended vehicle will focus on new and existing high-efficiency cogeneration projects. EnerCap is targeting a first closing of the fund on €100 million in the third quarter of this year.
“Our investment of €40m into E3F will see up to €175 million of new investment into replacing or upgrading key Polish energy infrastructure which is vital for future growth,” said Mariusz Grendowicz, chief executive officer of PIR, in a statement.
EnerCap is opening a new office in Warsaw due to its increasing focus on the Polish market. It has been an active investor in the market for four years, having made its first investment in the 22-megawatt Scieki wind farm in 2010-11. The Exergy fund will be led by EnerCap partners Jim Campion and George Formandl.
EnerCap, which has 14 partners and investment executives, currently manages the €98 million EnerCap Power Fund, which is focused on renewable energy investments in Central and Eastern Europe and is almost fully invested.