The SUSI Energy Efficiency Fund, a fund being raised by Swiss fund manager SUSI Partners, has received hard commitments of €175 million at second closing, beating the firm’s minimum fundraising target of €150 million.
The fund, which was launched in January this year, is now the “largest European energy efficiency fund for institutional investors” according to a statement from SUSI. It will remain open to investors until June 2015 and has a subscription limit of €300 million.
“We are very satisfied with the fundraising success and are proud that institutional investors from Switzerland and Germany have recognised the big potential of energy efficiency retrofits and have entrusted the implementation of the respective projects to us,” said Tobias Reichmuth, chief executive officer of SUSI Partners, in the statement.
The Luxembourg-domiciled 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.
SUSI says it has four projects in Germany and one in Monaco underway, with a further 12 to 15 in the pipeline for the rest of this year. It funds projects of between €1 million to €20 million and targets the likes of schools, hospitals and street lighting.
Technologies deployed to achieve savings include LED lighting systems, modern heating and cooling systems, building control systems and efficient pumps.