Copenhagen Infra II hits €2bn hard-cap

The Danish fund manager has raised one of the largest clean energy funds ever. The vehicle was originally targeting €1.5 billion.  

Danish fund manager Copenhagen Infrastructure Partners (CIP) has closed its second infrastructure fund on its circa €2 billion hard-cap, becoming one of the largest clean energy funds ever raised. CIP II was originally targeting €1.5 billion, which it surpassed backed by 19 limited partners (LPs), according to PDI’s sister title, Low Carbon Energy Investor.

The LPs include eight Danish institutional investors at launch – DIP, JØP, Lægernes Pensionskasse, PBU, Nordea, Nykredit, PFA and PensionDanmark – as well as Kommunal Landspensjonskasse, Lærernes Pension, the European Investment Bank, AP Pension, SEB Pension, Oslo Pensjonsforsikring, SEB Pension och Försäkring, a UK pension managed by The Townsend Group, T&W Holding A/S, LB Forsikring and VILLUM FONDEN.  

PensionDanmark, which was the sole LP in CIP’s first fund, is also the largest investor in its second vehicle, with circa €536 million committed. The 20-year buy-and-hold fund will focus primarily on renewable energy investments in Northern and Western Europe and North America.  

“The fund’s focus will be on investments in energy infrastructure with stable returns, such as biomass fired power plants, electricity transmission grids as well as onshore and offshore wind,” stated CIP senior partner Christian T. Skakkebaek. Speaking with Low Carbon Energy Investor, Skakkebaek said investors took to the fund due to its “focus on long, stable, contracted/regulated returns with low correlation to the business cycle” as well as its “focus on investments in renewable assets”. He added: “Which of the two elements is valued highest, varies from investor to investor. For some investors, the green focus has been important.”  

The final close comes just days after CIP II provided a €250 million mezzanine loan for German offshore wind project Veja Mate. The fund has also invested £160 million ($250 million; €225 million) in equity in the UK’s Brite biomass plant and has earmarked an investment to the UK’s Beatrice offshore wind farm. Skakkebaek expects the latter will take place in the first quarter of 2016, once it’s in late stage development. The CIP senior partner added the fund will offer its LPs co-investment opportunities, but declined to give more details.  

CIP is run by four partners, all ex-employees of Dong Energy: Jakob Baruel Poulsen, Rune Bro Roin, Torsten Lodberg Smed and Christian Skakkebaek. It already manages a first renewable energy infrastructure fund of about €1.2 billion, backed solely by PensionDanmark.