Latin America green fund holds $50m first close(3)

Real Infrastructure Capital Partners has managed to raise $50m from a group of development institutions to hold a first close for its Latin Renewables Infrastructure Fund. The latter is targeting a final close of $150m to $200m.

Fund manager Real Infrastructure Capital Partners (RICP) held a first close for a Latin America-focused renewable energy fund, the firm announced last week.

The fund, known as Latin Renewables Infrastructure Fund, managed to raise $50 million from a group of development institutions including Germany’s DEG, the Netherlands Development Finance Company, the International Finance Corporation, part of the World Bank Group, and the Swiss Investment Fund for Emerging Markets.

RICP said the fund is targeting a final close of between $150 million and $200 million.

The Latin Renewables Infrastructure Fund will target “utility-scale, renewable resource power generation – principally wind and hydro power – in Latin America, with an immediate focus on Central America,” RICP explained in a statement. 

The fund manager added that renewable assets in Latin America compare favourably with fossil-fuel based generation assets and are not dependent on subsidies. RICP said the fund will target investments with “very low operational risk, long term, fixed-price and dollar-indexed power sales contracts, and solid credit structures”.

RICP is led by four partners with several years of Latin America power investing experience at firms such as Conduit Capital Partners and Globeleq.