LP re-ups lead CapDyn to $1.2bn first and final close

Investors including APG, CalSTRS and the Abu Dhabi Investment Authority renewed their commitments to CapDyn’s North American clean energy strategy.

The clean energy division of Swiss fund manager Capital Dynamics held final close on a $1.2 billion fund after the three investors in the firm’s previous vehicle renewed their commitments to allow for more deals.

CapDyn’s clean energy and infrastructure group was able to complete a quick fundraising for its seventh fund thanks to what amounts to re-up commitments from their previous fund’s primary investors, John Breckenridge, who heads the clean energy group, told Infrastructure Investor. The investors include Dutch asset manager APG, California State Teachers’ Retirement System and a wholly-owned subsidiary of the Abu Dhabi Investment Authority.

The fund, Clean Energy and Infrastructure VII, closed on the same amount as its predecessor, CEI V. That fund has been fully deployed, investing $1.2 billion of capital in over 1.5GW of solar projects in around 18 months, Breckenridge said.

He added CapDyn is not likely to invest CEI VII as quickly and has plans to invest in assets beyond solar. The fund’s mandate is to invest in US-based utility-scale renewable generation assets, including solar, wind, biomass, conventional gas generation and waste gas-fueled power.

“The fundamental strategy of this fund is to buy assets that are owned by people who are not the logical long-term owners – developers, corporations, utilities – and put them in the hands of investors who are the appropriate long-term investors,” Breckenridge said. “Pension funds, insurance companies, sovereign wealth funds – we represent those types of investors.”

CEI VII has made its first investment, but Breckenridge would not disclose details, saying CapDyn would announce which asset it has backed within the next month.

He said there was some fund name confusion due to CapDyn naming what Breckenridge called a sidecar vehicle to Fund V as the firm’s sixth clean energy fund.

CapDyn’s clean energy group manages around $4.8 billion in assets, including 2.3GW of solar projects in its current portfolio, making it the second largest owner of solar projects in the US. The group targets deals of around $100 million for investments in global clean energy assets.