CI New Markets Fund I reaches US$1bn final close

Copenhagen Infrastructure Partners’ new fund, Copenhagen Infrastructure New Markets Fund I (CI NMF I), reached the final close on November 18, 2019, with Limited Partners' commitments of US$1.0bn exceeding the target fund size.

CI NMF I will primarily invest in greenfield renewable energy infrastructure projects in the fast-growing economies across Asia and Latin America as well as certain countries in Eastern Europe where CIP see scale, growth, and liquidity. The fund will apply the same value creation and de-risking approach as CIP’s existing OECD-focused funds and invest in offshore and onshore wind, solar PV, biomass and waste-to-energy and transmission grid systems among others. With a term of ten years and a “build-and-exit” strategy, the fund will participate in completing late-stage development, finance construction, and ultimately divest once assets are operational.

The final close in November follows a successful first close at USD 700m in May 2019 with the four cornerstone investors, PensionDanmark, Arbejdsmarkedets Tillægspension (ATP), KLP, and Lægernes Pension & Bank. The CI NMF I obtained commitments from institutional investors primarily comprised of pension funds, insurance companies, and family offices, and broadens CIP’s investor base with (ATP), the Danish Export Credit Agency (EKF), and a prominent group of German and Austrian institutions. With the final close on CI NMF I, CIP has total commitments of almost EUR8 billion (US$8.84 billion) across five funds.

The existing flagship funds CI I, CI A, CI II, and CI III focus on energy infrastructure in Western Europe, North America, and developed Asia-Pacific. CI I, CI A, and CI II are fully committed to investments and the most recent EUR3.5 billion (US$3.87 billion) fund CI III, which had final close in March 2018, is expected to end its investment period in 2020. All funds are performing well and expected to deliver an attractive risk-adjusted return well above target.