Swiss investment advisor SUSI Partners is about a month away from closing its energy efficiency fund on its €300 million hard cap, chief executive Tobias Reichmuth told Clean Energy Investor, Infrastructure Investor’s sister publication.
The fund, which SUSI says is the largest of its kind in Europe, has been raised in roughly 12 months and could have closed on more than €300 million. Reichmuth said:
“We have a hard cap. In a way it’s quite unfortunate because we clearly see high interest and we could have raised a €500 million fund. Why do we have a hard cap? In energy efficiency, contrary to renewable energy, when you have more money you need to buy into more projects. The limitation is on the project side – you have a certain team size which has been planned for a certain amount.”
The SUSI Energy Efficiency Fund will finance off-balance sheet measures to allow energy savings for existing infrastructure and buildings both public and private. Technology partners implement the measures and guarantee pre-defined energy savings for the duration of projects. The fund receives part of the annually-achieved savings and generates stable distributions.
SUSI claims that the investment risk is low since the various projects have to reach investment-grade rating and the portfolio is highly diversified. The fund, which SUSI says is “suitable for investors seeking alternatives to fixed income instruments” has an expected internal rate of return of five to six percent. It plans to invest in 50 to 70 projects over the course of the next three years.
*To find out more about the SUSI Energy Efficiency Fund, look out for Clean Energy Investor’s exclusive interview with chief executive Tobias Reichmuth, to be published from October 13. Want to learn more? Email the Editor, Bruno Alves, at email@example.com, or tweet us at @CEI_PEI.