Global private asset manager Capital Dynamics has reached the final close of its latest renewable energy fund.
Clean Energy Infrastructure IX (CEI IX) exceeded its initial target of €300m (£263m) by 75%, closing with €521m in capital commitments from new and existing investors, including pension funds, insurance companies, family offices and high-net-worth individuals, across Europe, the US, Asia and the Middle East.
CEI IX invests in subsidy-free renewables projects across Europe to capitalise on the growing demand for renewable energy sources.
The fund, which uses Capital Dynamics’s affiliate Netro Energy to generate cost efficiencies and for portfolio optimisation, has already invested in a portfolio of 11 solar photovoltaic assets across nine projects in Spain and Italy.
Four are already operational and generating income. Once the remaining assets become operational, they are expected to generate “stable cash flows” under long-term power-purchase agreements from credit-worthy corporate entities and utilities.
Capital Dynamics said the intention is to invest in around 20 projects across the fund’s investment period which is expected to conclude in August 2024. The company added that the fund aims to achieve “high single-digit” yields and “low double-digit” internal rate of return for its investors.
CEI IX is classified as an Article 9 ‘Dark Green Product’ under the EU’s Sustainable Finance Disclose Regulation with sustainable investment as a core product objective.
Simon Eaves, co-head of clean energy at Capital Dynamics, said: “The fact that the fund has exceeded its target reflects the high level of interest and enthusiasm we have seen from our investor base and the increasing demand for investment vehicles with specific renewables expertise to aid the energy transition.
“The ongoing effort to decarbonise our energy system underpins the longevity of these clean energy infrastructure technologies. We are proud of our strong track record investing in the renewables space.”
Dario Bertagna, also co-head of clean energy at Capital Dynamics, added: “We are delighted with the high level of interest in our European Fund, which significantly exceeded our initial target.
“We believe that our ongoing pledge to fund the energy transition is helping contribute to the global reduction of CO2 emissions while offering stable returns to our investors and creating opportunities for the local communities in which we operate.”
Capital Dynamics has been investing directly in clean energy in Europe since 2013. It owns and operates more than 30 projects with a combined capacity of over 1GW.
To read the latest edition of the latest IPE Real Assets magazine click here.
