Fundraising - MARCH 17, 2017

CIP raises $1.3b for new infrastructure fund

by Jody Barhanovich

Copenhagen Infrastructure Partners, an infrastructure fund management company, has raised $1.28 billion for its new infrastructure fund, Copenhagen Infrastructure III, primarily from the anchor investor group. The fund will now be open for general investor subscription.

The new fund has been backed by a group of anchor investors, which include PensionDanmark, Kommunal Landspensjonskasse, Lægernes Pension, Juristernes og Økonomernes Pernsionskasse and Danske civil- og akademiIngeniørers Pensionskasse.

The fund is a 20-year “build-and-hold” fund, which means the fund focuses on greenfield investments and expects to hold the investments throughout the entire commercial lifetime of the assets.

“Copenhagen Infrastructure III will have the same focus as CIP’s previous funds, being investments in energy infrastructure with stable returns, including onshore and offshore wind, solar PV, biomass-fired power plants, transmission grid systems, etc.,” says Christian Skakkebæk, senior partner at Copenhagen Infrastructure Partners. The fund will invest primarily in properties throughout Northern and Western Europe as well as North America.

Copenhagen Infrastructure Partners currently has three funds under management, with total commitments of $3.5 billion. The fundraising follows the recent $2.14 billion Copenhagen Infrastructure II, which has invested in 10 energy infrastructure projects. Copenhagen Infrastructure II had its final closing in June 2015.

Copenhagen Infrastructure II acquired a $61 million mezzanine loan for the construction of the onshore wind farm Fluvanna I in Scurry County, Texas; the total investment in Fluvanna I was $251 million. The onshore wind farm will consist of 74 2.1-megawatt Gamesa turbines for a total project rated output of 155.4 megawatts. Fluvanna I is expected to commence commercial operations in fourth quarter 2017. Fluvanna I is owned and will be operated by Terna Energy.

The energy infrastructure market currently shows attractive growth due to the recent commercial breakthroughs in several renewable energy technologies, according to Skakkebæk. A number of attractive exclusive investment opportunities, originated in cooperation with CIP’s industrial partners, have been identified already for Copenhagen Infrastructure III.

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