Aquila European Renewables Income Fund has raised €127.5m, an amount which falls below the London-listed investment firm’s €150m fundraising target.

Last month, Aquila sought shareholder approval to issue new shares to raise €150m or up to €200m based on investor demand.

The company has now raised €127.5m, an amount it said would be used to acquire new assets to add to the company’s existing portfolio and provide funds for the working capital.

Christine Brockwell, lead investment adviser on behalf of Aquila European Renewables Income Fund, said: “The new capital we have raised significantly increases the size of the fund, allowing us to continue our successful acquisition strategy and further diversify our fund.

“Our enhanced pipeline of 14 investment opportunities across a range of technologies and geographic locations positions the fund well for future growth, allowing our investors to capitalise on the exciting opportunities presented by Europe’s ongoing transition to a low carbon society.”

Ian Nolan, chair of Aquila European Renewables Income Fund, said: “We are extremely pleased, given the challenging economic backdrop, to have successfully raised €127.5m of new capital and to see many of our existing shareholders commit further to the fund.

“We are also encouraged by the demand, particularly in the UK, from a number of new major blue chip investors. I would like to thank all those who have continued to show such strong support to the fund and welcome our new shareholders to the register.

“While demand from UK investors exceeded expectations, the Board remains committed to further diversification of the investor base through wider European investor representation.”

To read the digital edition of the latest IPE Real Assets magazine click here.