Insider Brief
- Copenhagen Infrastructure Partners (CIP) has exceeded its EUR 12 billion target for its fifth flagship fund, CI V, at final close, for investment in large-scale renewable infrastructure.
- The fund, which has already committed 60% of its capital to six projects, aims to invest in wind, solar PV, and battery storage across Organisation for Economic Co-operation and Development markets in Europe, North America, and Asia Pacific, with plans to add 30 GW of new energy capacity.
- CIP highlights increasing electricity demand due to digitalization, AI, and electrification as driving factors behind the fund’s success, positioning itself as a key player in advancing large-scale renewable energy projects globally.
PRESS RELEASE – Investor interest in large-scale greenfield energy infrastructure investments is strong, and CIP is now finalizing fundraising for CI V with total fund commitments exceeding the target of EUR 12 billion, excluding capital raised for co-investments.
“Reaching 12 billion euros is a fantastic result and a testament to our proven industrial approach to energy infrastructure investments. I am proud that several of the world’s largest and most sophisticated investors are committed to CIP, and I am delighted to once again have the support of our existing investors and welcome many new investors to our platform,” said Jakob Baruël Poulsen, Managing Partner at Copenhagen Infrastructure Partners.
The fund aims to invest in the energy transition across a range of technologies, from wind and solar PV to battery storage, across low-risk OECD countries in Europe, North America and Asia Pacific. CI V has exceeded all expectations so far and has already made six final investment decisions (FIDs) committing 60% of the fund, ensuring fast deployment of capital and significant value creation early in the fund lifetime.
With ownership of more than 50 development stage projects with a potential CI V investment volume of EUR 24 billion, the fund is on track to be committed within the next year. CI V is estimated to add 30 GW of new energy capacity to the global grid, which is enough to power more than 10 million average households.
“Our team of energy industrialists are experts in value-enhancing greenfield investments in large scale energy infrastructure projects that deliver attractive risk-adjusted returns for our investors. We believe that CI V is a highly relevant and important component in our investors’ portfolios as it offers portfolio stabilization and diversification with downside protection from contracted cash flows and exposure to inflation. The value creation in our funds is based on early entry at low cost and derisking and optimizing the asset across the different project stages, which are generally less correlated to macroeconomic factors and economic cycles. Robustness is further enhanced through a high degree of optionality from our large project portfolio and diversification across technologies and markets,” said Mads Skovgaard-Andersen, Head of Flagship Funds and Partner at CIP.
A significant amount of new power generation and capacity needs to be added to the grid to meet the growing demand for new electricity driven by digitalization, AI and the rapid build-out of data centers, as well as the general electrification of transportation and heating. Renewables – particularly solar and onshore wind – in most markets are the most cost-competitive and scalable new forms of energy, and thereby key for countries to improve cost-competitiveness and energy security.
“Massive structural tailwinds are pushing the energy transition forward. Surging electricity demand, fueled by economic growth, widespread electrification and digitalization, requires an unprecedented amount of new energy infrastructure capacity to be built. At the same time, the fundamentals for renewables are as strong as ever as industrial competitiveness, productivity, and energy resilience are at the centre of political and industrial agendas globally. By combining our industrial and financial expertise, CIP is uniquely positioned to deliver some of the largest, most critical and complex energy projects globally – supporting countries in securing cost-competitive, reliable and clean power, while creating value for our investors at the same time,” said Jakob Baruël Poulsen.
