Copenhagen Infrastructure Partners
As part of our overall investment strategy, PensionDanmark has gradually increased the investments in renewables and sustainable energy infrastructure since 2009. To achieve our objective PensionDanmark has a close collaboration with Copenhagen Infrastructure Partners (CIP). This enables us to continuously strengthen our sustainable infrastructure portfolio through investments made possible through CIP’s funds.
CIP is a Danish fund management company founded in 2012 with currently more than EUR 6bn under management. The company focuses on long-term investments in infrastructure assets with a high degree of stability in cash flows and low correlation to the ordinary business cycles.
Their primary focus is energy related infrastructure assets within a broad range of technologies, which makes them a suitable partner to PensionDanmark. CIP’s geographical focal point is established markets with limited regulatory and political risk primarily in Northwestern Europe, North America and selected countries in East Asia.
PensionDanmark has made commitments to all of CIP´s four funds and is the sole investor of their two initials funds, Copenhagen Infrastructure I and Copenhagen Infrastructure Artemis.
Copenhagen Infrastructure I
CI I was established in 2012 by initiative of PensionDanmark. It has a total commitment of EUR 1bn made by PensionDanmark, which is the sole investor of the fund. On behalf of PensionDanmark, CI I has invested in onshore and offshore wind farms and biomass power plants in the UK.
Equally, PensionDanmark is the sole investor of CI Artemis, which was established in 2014 with a total commitment of EUR 392 by PensionDanmark. The fund is dedicated to the grid connection investment, DolWind 3 in the German North Sea.
Copenhagen Infrastructure II
CI II was established in 2015 with a total commitment of EUR 2bn by Danish and international institutional investors. With a commitment of approx. EUR 540m, PensionDanmark is the largest investor of CI II that holds 19 investors. The fund has invested in biomass power plants and offshore wind farms in the UK and Germany.
Copenhagen infrastructure III
In March 2017 PensionDanmark made a EUR 540m commitment to CIP’s fourth fund, CI III, which obtained commitments of EUR 1,9bn in its first close.The Fund held a final close on March 23, 2018 at the EUR 3.5 billion hard cap exceeding the EUR 3.0 billion target fund size.
The fund is a 20-year “buy-and-hold” fund and shares the investment focus of CIP’s previous funds, which is to invest in energy infrastructure with stable expected cash flows. This includes onshore and offshore wind farms, solar energy, biomass power plants and transmission grid systems.
PensionDanmark has currently 10 pct. of its total assets invested in different types of infrastructure. 50 pct. of these investments are made through Copenhagen Infrastructure Partners.
New Markets Fund
PensionDanmark has given investment commitment of USD 250m to Copenhagen Infrastructure Partners’ New Markets Fund.
The fund will target greenfield renewable energy infrastructure projects in economies in primarily Asia and Latin America with scale, growth, and liquidity.
The fund will apply the same value creation and de-risking approach as CIP’s existing OECD-focused funds and invest in offshore and onshore wind, solar PV, biomass and waste-to-energy, transmission grid systems among others.