CIP targets Asia and Latin America with new fund

Copenhagen Infrastructure Partners (CIP) has established a new fund with a primary focus on greenfield renewable energy projects in Asia and Latin America.

Copenhagen Infrastructure Partners' Bearkat I wind farm in Texas, United States (pic credit: Global Wind Service)
Copenhagen Infrastructure Partners' Bearkat I wind farm in Texas, United States (pic credit: Global Wind Service)

Its Copenhagen Infrastructure New Markets Fund I K/S (CI NMF I) will also finance clean energy projects in "certain countries in eastern Europe and Africa", the Danish firm stated.

CIP achieved a first close of US$700 million (€623 million) on the fund earlier this month, and expects to reach a final close with total commitments of $1 billion in the next nine months, it added.

The infrastructure investor will target both onshore and offshore wind farms, as well as solar PV, biomass, waste-to-energy and transmission projects.

It aims to fund the construction of greenfield projects and then exit the investments once plants are operational.

CIP owns stakes in several offshore wind farms under development in Taiwan, but has no wind power holdings in Latin America.

"There is a large and growing need for new energy infrastructure outside of North America and Europe, which are targeted by the existing CIP funds," said CIP managing partner Jakob Poulsen.

"The New Markets Fund will pursue the significant market opportunity in renewable energy infrastructure investments in the fast-growing economies primarily in Asia and Latin America, and exploit CIP’s existing industrial skills, networks and de-risking approach to create value for our investors." 

CIP has also set up a new investment team for its new fund. It claims members have "extensive energy and mergers and acquisition experience in Asia and Latin America".

The investment team will be led by newly appointed CIP partner Niels Holst, who has most recently served as managing director at the financial advisory firm Capricorn Real Assets.

Initial investors in the fund include PensionDenmark (PD), Arbejdsmarkedets Tillægspension (ATP), Kommunal Landspensjonkasse (KLP) and Lægernes Pension, CIP stated.

PD, Lægernes Pension and KLP are cornerstone investors in other CIP funds, while ATP is a new cornerstone investor for CIP.

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