Copenhagen Infrastructure Partners has closed its second Growth Markets Fund with approximately $3 billion in commitments, nearly tripling the size of the strategy’s first vintage as the firm expands investment in large-scale energy infrastructure across high-growth emerging markets.
Growth Markets Fund II, or GMF II, targets projects across 15 select middle-income markets in Eastern Europe, Asia and Latin America.
The fund has already committed approximately $1.6 billion across nine investments and, according to CIP, had total value exceeding paid-in capital at the time of final close.
CIP expects GMF II to become fully committed within the next one to two years based on its existing portfolio and visibility into near-term investment opportunities.
The strategy focuses on greenfield energy infrastructure in markets where rising electricity demand, economic growth and infrastructure needs are creating opportunities for large-scale renewable power and storage projects.
GMF II has already backed several significant developments.
In Chile, the fund has commissioned what CIP describes as the country’s largest standalone battery project, with construction completed below budget.
In Mexico, the strategy has begun construction on the country’s first large-scale combined solar and battery storage projects after securing the largest capacity allocation under a recent binding planning framework issued by the Mexican government.
GMF II has also reached financial close on Pestera II, an onshore wind development that CIP describes as one of Romania’s largest renewable energy investments.
The fund attracted a diversified group of institutional investors including sovereign wealth funds, pension funds, development finance institutions and impact-focused family offices.
Existing investors also returned for the new vintage, while CIP expanded its limited-partner relationships across Asia, the Middle East and North America.
The significantly larger fund reflects CIP’s confidence that emerging and middle-income markets require substantial new electricity generation, storage, and related infrastructure to support economic expansion.
The strategy builds on the firm’s first Growth Markets Fund.
CIP expects GMF I ultimately to deliver approximately 8.7 GW of energy infrastructure across more than 50 projects in India and South Africa.
The second fund broadens that strategy across additional markets while maintaining a focus on jurisdictions where CIP believes underlying electricity demand and economic fundamentals support investment.
Target markets for the Growth Markets strategy include India, Vietnam, the Philippines, Mexico and South Africa.
CIP uses local teams and its broader global development organization to originate, develop, finance and construct projects in those markets.
The firm’s wider investment platform spans solar and wind generation, energy storage, electricity transmission and distribution, advanced bioenergy, low-carbon fuels and carbon capture.
Founded in 2012, Copenhagen Infrastructure Partners currently manages 15 funds and has raised approximately €43 billion from more than 200 institutional investors.
Its project portfolio spans more than 30 countries, supported by a network of more than 2,300 professionals.
For GMF II, CIP sees the nearly threefold increase in fund size as validation of an investment strategy focused on connecting institutional capital with markets that need substantial new energy infrastructure.
With $1.6 billion already committed and additional projects under development, the firm is now focused on deploying the remaining $3 billion across its targeted growth markets.
KEY QUOTES:
“Reaching a $3 billion final close and tripling the fund size compared to our predecessor fund is a strong validation of our Growth Markets strategy and of investors’ confidence in our ability to originate, develop, and build large-scale renewable energy projects.”
“For GMF II, we have been successful in attracting a diverse group of LPs including sovereign wealth funds, pension funds, impact-focused family offices, and Development Finance Institutions (DFIs), in addition to re-ups from existing LPs, expanding our outreach across Asia, the Middle East, and North America.”
Niels Holst, Partner and Co-Head of Growth Markets Funds at Copenhagen Infrastructure Partners
“With GMF II, we are building on our track record and expanding our ability to connect capital with high-quality renewable energy projects in select Growth Markets that have a fundamental need for new and reliable energy infrastructure.”
“We are delivering a robust investment product to our LPs, targeting attractive risk-adjusted returns within a resilient asset class.”
Ole Kjems Sørensen, Partner and Co-Head of Growth Markets Funds at Copenhagen Infrastructure Partners
