Danish RE Infrastructure Fund Targeting Asia and LATAM Closes on $700 Mn

“Obtaining first close commitments of USD 700m from a group of leading Nordic investors is an important proof of investor confidence in CIP’s approach to energy infrastructure investments and a testament to the track record built with CIP’s Western Europe and North America focused energy infrastructure funds CI I, CI II, and CI III. The CI NMF I is a significant step in CIP’s continued expansion as it broadens our offering to also include infrastructure funds targeted at fast-growing major new economies,” says Jakob Poulsen, Managing Partner in CIP.

With commitments from cornerstone investors PensionDanmark (PD), Arbejdsmarkedets Tillægspension (ATP), Kommunal Landspensjonskasse (KLP), and Lægernes Pension. The fund is expected to achieve its final close with total commitments of approximately USD 1 billion within the next nine months.

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“CIP has come a long way since PensionDanmark and CIP’s senior partners established CI I back in 2012 with PD as sole and founding investor. CIP has demonstrated its ability to develop and construct renewable infrastructure projects in Europe and America on time and budget and has delivered very attractive returns to its investors. We see the New Markets Fund as a natural next step to broaden the investment universe to new markets in Asia and Latin America where there is a significant need for renewable energy investments that represent attractive investment opportunities for CIP and its investors,” said Torben Möger Pedersen, CEO at PensionDenmark

The New Markets Fund I will target greenfield renewable energy infrastructure projects primarily in Asia and Latin America as well as certain countries in Eastern Europe and Africa with scale, growth, and liquidity. It will apply the same value creation and de-risking approach as CIP’s existing OECD-focused funds and invest in offshore and onshore wind, solar PV, biomass and waste-to-energy and transmission grid systems among others.

“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. 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,” added Poulsen.

The New Markets Fund has a term of ten years and will apply a “build-and-exit” strategy i.e. the fund will focus on greenfield projects, fund construction and exit the investments once plants are operational.

“CI NMF I combines some of the industry’s most experienced investors with CIP’s proven ability to design, construct and commission world-class projects. Together we will deliver cost-effective clean energy infrastructure to these dynamic, high growth markets. The CI NMF I strategy is right for our time,” noted Niels Holst, CIP Partner who will head the fund.

With the addition of CI NMF I, CIP has five funds under management with total commitments of EUR ~7.5bn. The existing funds CI I, CI A, CI II, and CI III focus on Western Europe and North America.