A new infrastructure fund managed by Copenhagen Infrastructure Partners, CIP, has now been established. The fund, Copenhagen Infrastructure III, has in its 1st close achieved a total commitment of 8.8 bn DKK from five institutional investors.
Having committed 4 bn DKK to the fund, PensionDanmark is the biggest investor in Copenhagen Infrastructure III, which will now be open for investor commitment.
"We have had a very satisfactory collaboration with Copenhagen Infrastructure Partners and we are very pleased with the team’s ability to source investments and to attract investors. Our commitment in connection with the previous investments is a reflection of Copenhagen Infrastructure Partners' undeniable competence in the field. We are looking forward to the sizeable investments in the energy market that the fund will undertake," says CEO, Torben Möger Pedersen, PensionDanmark.
The new fund will have the same focus as CIP’s previous funds, being investments in energy infrastructure with stable expected cash flows, including onshore and offshore wind farms, solar energy, biomass fired power plants, transmission grid systems, etc. It is a truly long term by being a 20-year “buy-and-hold” fund; hence, as a base case it expects to hold the investments throughout the entire lifetime of the assets.
Since 2009 PensionDanmark has gradually increased its investments in renewables and energy infrastructure, and the commitments to Copenhagen Infrastructure III furthers that development. Hence PensionDanmark will at the same time tap in to the investments in renewables made possible by the fund and contribute to realizing the goals in the 2015 Paris Agreement.
The fundraising for the third CIP fund follows the recent successful investment of the 15 bn DKK Copenhagen Infrastructure II, which has been invested in ten energy infrastructure projects. Copenhagen Infrastructure II had its final closing in June 2015. CIP's first fund, Copenhagen Infrastructure I, was established in October 2012 on initiative from PensionDanmark as the sole investor with a 6 bn DKK commitment.
PensionDanmark has 10 percent of total assets under management invested in different types of infrastructure and half of these investments are managed by Copenhagen Infrastructure Partners.
See also: Press release from Copenhagen Infrastructure Partners concerning the new fund, CI III, here.
