Tages Capital has raised €155m for a fund investing in Italian solar panels.
The closed-ended Tages Helios is the first fund launched by Milan-based Tages Capital SGR dedicated to the Italian photovoltaic sector.
The fund, launched in 2015 and backed with an initial €133m, is aiming to raise €250m to €300m and return between 8% and 10% to investors.
Italian insurers, including Generali, Intesa Vita, Unipol, as well as pension funds, have backed the vehicle.
Tages Helios will acquire PV plants in Italy, typically with up to four to five years of operation history with the aim to rationalise management activities and increase plant efficiency. Plants will be owned by the fund until the expiry of state incentives, which last for 20 years.
The pension fund for Monte dei Paschi di Siena employees and Banca Consulia have also previosly committed to the fund.
Tages said that after experiencing rapid growth, followed by several changes in regulation, Italy’s photovoltaic sector is ready for a consolidation process that will favour operators with strong industrial expertise and the capability to drive efficiency improvements.
A third close for the fund is scheduled for 9 April, with Tages targeting Italian pension funds and international investors.
With leverage of up to 70%, the fund will have €750m to €850m to invest in Italy.
Tages’ Helios Fund and renewable energy plant manager Delos Power last year refinanced the 9REN portfolio of 51 photovoltaic plants with a club of banks.
Banca IMI, BNP Paribas Milan, Intesa SanPaolo, Natixis Milan and UniCredit provided €162m of debt to the vehicle.