EuropeModus Asset Management, a licensed fund management company, has completed the first phase of distributing the newly launched Clean Energy Infrastructure Fund. This closed-end investment fund is designed for informed investors and has already attracted €85 million ($91 million) in investor commitments during the first closing. Notably, the European Investment Fund (EIF) and Baltic pension funds were among the leading investors.
Modus Asset Management's CEO, Povilas Pečiulis, stated that the management team has a solid track record in renewable energy investment, and the Fund has the highest sustainability rating of Dark Green financial products and is focused on long-term investments.
"Clean Energy Infrastructure Fund aims to accelerate the region's transition to renewable energy by empowering local renewable energy developers and creating an institutional-level investment platform," said Pečiulis.
The Fund will invest in solar PV and wind energy projects and collocated battery storage in the Baltic States, Poland and other Central European countries with an investment period of five years and a lifecycle of ten years. It will target projects in late-development and ready-to-build stages, as well as turnkey transactions, expected to reach a total installed capacity of 600 MW.
Pečiulis also said that the completion of the first stage of distribution shows attractiveness and resilience of renewable energy infrastructure asset class.
"Contributing to the EU's green transition is a priority for the EIF, and we are very glad to be doing our part and investing in a fund that will make tangible and meaningful steps to meet the EU's climate targets," said Marjut Falkstedt, Chief Executive of the European Investment Fund.
"Investing in renewable energy addresses the shortage of local generation and contributes to strengthening the resilience of economies and consumers to energy price shocks. The development of such generation capacity also contributes to lower carbon emissions, which in the longer term will not only provide environmental benefits but also increase competitiveness of local businesses," said Tadas Gudaitis, Director of Investment Management of Swedbank, which is the largest pension fund manager in Lithuania, a Baltic state.
According to Pečiulis, the Fund has a target size of €200 million ($215 million) and a hard cap of €350 million ($375 million).
