Swedish pension and insurance group Folksam is investing SEK5.6bn (€500m) in the Copenhagen Infrastructure V (CI V) fund, with Folksam’s municipal pension fund subsidiary KPA Pension taking SEK3.8bn of the group’s slice.
The manager of CI V, Copenhagen Infrastructure Partners (CIP), said back in June that this latest iteration of its flagship fund had reached a €5.6bn first close. Its fundraising target is €12bn.
A spokesman for Folksam confirmed its new investment in CI V is part of CIP’s further fundraising and a later close.
CI V has a global reach and intends to diversify investments across technologies such as contracted offshore wind, energy storage, onshore wind and solar in low-risk OECD countries in North America, Western Europe, and Asia Pacific.
Rebecka Elkert, head of alternative investments at Folksam, said: “We are investing with a successful and experienced manager that is one of the world’s largest global managers in renewable energy, and has exceeded the return targets in all previous funds.”
She said the investment contributed to increasing Folksam’s expected return, and had “a fully integrated sustainability focus through a clear focus on investments in the energy transition, such as the development of wind power assets on land and at sea, solar parks and energy storage and transmission”.
Within the Folksam group, while the lion’s share of the investment is being taken up by KPA Pension, SEK730m will be invested by Folksam’s occupational pension insurance unit, SEK510m by Folksam Liv, and SEK280m apiece by the general insurance division Folksam Sak and the Consumer Cooperative pension foundation, according to the announcement.
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