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AP Pension invests DKK500m in green energy fund

Denmark’s AP Pension is investing DKK500m (€67.2m) in a new infrastructure fund focusing on European and US renewable energy assets, alongside other big Nordic and UK investors.

Copenhagen Infrastructure Partners (CIP) announced last week that its new fund – CI III – had gained a further DKK5.2bn in investment commitments since March from institutional investors in the Nordic countries and the UK by its third close.

A spokesman for commercial mutual pension provider AP Pension, which has total assets of DKK106bn, confirmed it was planning to invest DKK500m to the new fund, but was unable to give further details.

AP Pension already has investments in renewable energy via the funds Green Power Partners I and II, as well as through CIP’s previous energy infrastructure fund CI II.

Danish labour-market fund PensionDanmark, Norway’s KLP, and the Danish doctors’ pension fund Lægernes Pension were among the anchor investors in the fund, contributing to CI III’s initial DKK8.8bn of fundraising. This was made public in March.

The fund is to invest primarily in large-scale offshore and onshore wind energy, solar PV energy, and biomass/waste-to-energy projects, as well as transmission and distribution assets primarily in north-western Europe and North America, CIP said.

It said the fund had a strong pipeline of investment opportunities as well as ownership or exclusivity rights to nine energy infrastructure projects, comprising about €1.5bn of potential investments.

The asset management firm said it expected subscriptions to the new fund to come from a broader international group of large investors in the next closings.

Having received total commitments so far of DKK14bn, CIP said the fund’s target for subscriptions was still €3bn, with the fund remaining open until December.

 

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  • QN-2380

    Asset class: Direct Infrastructure Investments.
    Asset region: OECD Countries.
    Size: EUR 75m – EUR 100m.
    Closing date: 2017-12-08.

  • QN-2381

    Asset class: US Direct Lending.
    Asset region: Northern America.
    Size: EUR 50m – EUR 100m.
    Closing date: 2017-12-08.

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