Helsinki-based wind and solar fund manager and developer Taaleri Energia Funds Management has held a €220 million ($247 million) first close for its fifth renewable energy fund, Taaleri SolarWind II Fund.
The fund is targeting €300 million ($338 million) with a hard cap of €400 million ($450 million).
The diverse group of investors include the European Investment Bank, Ilmarinen Mutual Pension Insurance Company, Varma Mutual Pension Insurance Company, Taaleri Plc, the Taaleri Energia team and a wide range of pension funds, foundations, endowments and family offices. The fund also received financial support from individual investors, investing through a fund managed by Taaleri Private Equity Funds.
With a significant number of Finnish and international investors in active due diligence, the firm expects to see continued strong demand in future closings.
The Taaleri SolarWind II fund will invest in utility-scale wind and solar assets with a diversified portfolio of predominantly ready-to-build assets in Europe (80 percent) and in the United States (20 percent).
The fund is expected to finance approximately 850 megawatts of renewable energy capacity, which will offset over 1 million tons of CO2 annually throughout the 25+ year lifetime of the assets, according to Taaleri.
It has an extensive active deal pipeline within the company’s target markets, with two investments that have already been approved and expect to close in the coming months.
“Our strategy is to invest approximately €20 million to €50 million ($22 million to $56 million) equity tickets, but we can also execute larger deals through co-investments with our fund investors and other strategic partners,” said Kai Rintala, managing director of Taaleri Energia in a statement. “We are extremely happy with the investor interest and support that the fund has generated so far, and we look forward to putting that money to work.”
The largest private equity owner-operator in the Finnish wind market, Taaleri has 110 turbines producing approximately 1 percent of all the country’s electricity. The company currently manages a 1-gigawatt portfolio of wind and solar assets.