The Danish manager Copenhagen Infrastructure Partners (CIP) has completed the fundraising for the second edition of its Growth Markets Fund vehicle, GMF II, achieving commitments of nearly 3 billion dollars (2.56 billion euros) between the main fund and its associated structures, which represents almost tripling the volume of the first fund of this strategy.
This vehicle is aimed at financing large energy infrastructure projects in 15 economies with middle income and high dynamism in Eastern Europe, Asia, and Latin America, according to the firm in a note released this Monday.
In parallel, CIP has indicated that GMF II already has 1.6 billion dollars (1.366 billion euros) committed in nine operations and that, according to the manager itself, the total value of the portfolio at the time of the final closing already exceeds the capital contributed by investors.
Among the initiatives promoted by the fund is the development of the largest independent battery storage project in Chile, executed below the expected budget; the start of construction of the first large-scale solar energy and battery storage projects in Mexico, as well as the financial closing of the onshore wind farm Pestera II, considered one of the largest bets in renewables in Romania.
Furthermore, CIP has indicated that, thanks to the volume of projects in development and the visibility on the investments it expects to materialize in the short term, GMF II is moving towards the goal of having its entire investment capacity committed within a horizon of one to two years.
BET ON GROWTH MARKETS
"Reaching a final closing of 3 billion dollars and tripling the size of the fund compared to its predecessor represents a solid validation of our Growth Markets strategy and the confidence of investors in our ability to originate, develop, and build large-scale renewable energy projects," defended the partner and co-director of Growth Markets Funds at CIP, Niels Holst.
Regarding the profile of the participants, the fund has a diversified base that includes sovereign funds, pension funds, impact-focused family offices, and development financial institutions, in addition to new contributions from investors who were already present in this strategy.
According to the company, the success of the capital raising highlights the interest of investors in the need for new energy infrastructures in the target markets. In this line, the firm estimates that GMF I will provide around 8.7 GW of energy capacity in India and South Africa through more than 50 projects.
Now, the partner and co-director of Growth Markets Funds at CIP, Ole Kjems Sorensen, has emphasized that GMF II will allow them to "expand the capacity to connect capital with high-quality renewable energy projects in selected growth markets that present a fundamental need for reliable new energy infrastructures."
All of this is possible, to a large extent, because GMF II relies on CIP's local presence and its track record in the development and execution of 'greenfield' energy infrastructure projects on a global scale.