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Copenhagen Infrastructure Partners reaches first close on Copenhagen Infrastructure IV fund

Copenhagen Infrastructure Partners P/S (CIP), a Danish fund management company specialized in investing in the energy infrastructure sector has announced that it has reached EUR 1.5 billion first close on Copenhagen Infrastructure IV (CI IV) fund, which is set to become the largest fund globally within renewable energy infrastructure investments with a target fund size of EUR 5.5 billion.

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Copenhagen Infrastructure Partners P/S (CIP), a Danish fund management company specialized in investing in the energy infrastructure sector has announced that it has reached EUR 1.5 billion first close on Copenhagen Infrastructure IV (CI IV) fund, which is set to become the largest fund globally within renewable energy infrastructure investments with a target fund size of EUR 5.5 billion.

Reporting a “strong appetite” among institutional investors, CIP expects the fund is expected to achieve capital commitments of EUR 5-7 billion and invest EUR 10-14 billion in greenfield renewable energy infrastructure across North America, Western Europe, developed Asia, and Australia.

We are very pleased to reach the first close of CI IV with a mix of existing and new blue-chip institutional investors committing to the fund. We are honoured by the continued investor confidence in CIP’s approach to energy infrastructure investments and look forward to continuing to create value for our investors, project owners, and local communities through the fund’s investments. The market timing is favorable for greenfield renewable infrastructure investments, and the fund and CIP are well-positioned to capture the attractive market opportunity with significant visibility of the investment pipeline and a high degree of execution certainty delivered by a large team of experienced industrialists, said Jakob Baruël Poulsen, Managing Partner in CIP.

The new fund reached a first close of EUR 1.5 billion on June 15, 2020, with capital commitments from a group of leading institutional investors, including the two Danish pension funds PensionDanmark and AP Pension, KLP from Norway as well as pension and life companies and large family offices.

Several other prominent institutional investors are in the process of committing to CI IV, including investors from among others the Nordics, Continental Europe, UK, Israel, North America, Asia, and Australia.

We are pleased and proud to manage and invest what is set to become the largest renewable energy infrastructure fund ever raised globally, and we are excited about delivering energy infrastructure projects of EUR 10-14 billion in close cooperation with our industrial partners and local communities. We take pride in creating value for our investors while enabling the energy transition to a modern low carbon energy system, said Steen Lønberg Jørgensen, Partner in CIP.

Continue successful investment strategy

CIP has seven funds with around EUR 10 billion in commitment under management. The funds have currently made 20 investments in large scale energy infrastructure assets totaling almost 8 GW in capacity across the US, the UK, Germany, Spain, and Taiwan.

In addition, more than 15 greenfield energy infrastructure projects are in the process to reach the final investment decision and start of construction within the next 2-3 years.

Investors in the funds comprise mainly of pension and life companies and large family offices but also include several blue-chip institutional investors from the Nordics, Continental Europe, the UK, Israel, Taiwan, Korea, Australia, and multi-lateral organizations such as the European Investment Bank (EIB).

Since CIP was established in 2012 with PensionDanmark as a sole investor we have had a very satisfactory collaboration which we are delighted to continue on a so-far unprecedented scale. We look forward to benefiting once again from CIP’s profound knowledge in our joined effort to invest in renewable energy infrastructure. Our investment will gene­­rate great value for our members and at the same time make a substantial contribution in the struggle to achieve the climate goals on a global level, said Torben Möger Pedersen, CEO at PensionDanmark.

The investment strategy for CI IV is a continuation of the successful predecessor funds Copenhagen Infrastructure I, II and III, and is tailored to institutional investors with a long-term investment horizon. The fund will focus on greenfield investments within core energy infrastructure.

The CI IV fund has a global reach and will diversify investments across technologies such as contracted offshore wind, onshore wind, solar PV, transmission, storage, waste-to-energy (WtE), and biomass assets in low-risk OECD countries in Western Europe, North America and in the developed Asia-Pacific.

Following the first close of CI IV, CIP has seven funds under management with total commitments of around EUR 9.5 billion. The new fund CI IV has a target fund size of EUR 5.5 billion and the final close is expected during the next 9 months.

This new investment is a part of our effort to find attractive investment opportunities that are characterized by stability and predictability for KLP’s customers. When fully deployed and when taken together with our other investments in other CIP funds it also represents a significant contribution to KLP’s ambition to facilitate sustainable investments in renewable energy infrastructure, said Harald Koch-Hagen, SVP of Risk Management & Allocation in KLP.

Positive environmental impact

The investments of the fund are expected to have a significant positive environmental impact – including carbon dioxide (CO2) reduction and create high-quality jobs in the local communities of the assets.

With the establishment of CI IV, CIP’s total portfolio of investments is estimated to save the equivalent of approximately 10-11 million tonnes of CO2 each year and sustainably power approximately 5-6 million households across the globe.

We are proud to be part of the world’s largest renewable energy infrastructure fund. With a EUR 335 million investment, we are taking a big step towards fulfilling our ambition to contribute to the green transition, benefiting both the climate and our customer’s pension savings. Being able to do so locally here in Denmark with CIP, who has an impressive history and unique expertise in this field, is just an added bonus, said Bo Normann Rasmussen, CEO at AP Pension.

Bruun & Hjejle, Clifford Chance, and Fried Frank act as legal counsel. Selinus, Eaton Partners, and CFJC act as placement agents.

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