A minimum investment size of EUR 125,000 is foreseen for the Clean Energy Infrastructure Access Fund, also a closed-end fund for informed investors. The Clean Energy Infrastructure Fund (CEIF), whose main investors are the European Investment Fund and Baltic pension funds, has a target size of EUR 200 million and a hard cap of EUR 350 million.
“The Clean Energy Infrastructure Access Fund will give a broader range of informed investors access, via smaller-sized investments, to the fast-growing renewable energy asset class and the CEIF master fund, which qualifies for the highest sustainability category. Realising the importance of portfolio diversification, we searched for the best solution to offer investors an attractive balance of return and risk. We are pleased to partner with this team, which has solid experience in the Baltics and Poland,” says Vilius Oškeliūnas, the CEO and a member of the board at Atelier Investment Management.
The CEIF is Modus Asset Management’s fourth renewable energy fund focused on contributing to the region’s transition to renewable energy by empowering local developers and creating an institutional-level investment platform. The fund, which invests in the Baltic countries, Poland, and other Central European countries, meets SFDR Article 9 “Dark Green” sustainability criteria and targets long-term investments. Modus Asset Management CEO Povilas Pechulis says this collaboration will further accelerate the growth of this market in the region.
“In the quest to maximise energy independence, investing in alternative energy in the Baltic and Polish region is more important than ever. In recent years, the sector has gone through cycles of growth and stabilisation and has become much more complex, demanding deeper knowledge and market know-how. This partnership with Atelier Investment Management will open the door for a much wider range of investors to benefit from the advantages of the CEIF, which normally is only accessible to larger institutional investors,” Mr Pečiulis says.
It will also help speed up the region’s transition to green energy by opening the sector to a larger number of investors and offering them a reliable way to invest in renewable energy, the CEO of Modus Asset Management says. Among the key factors for successful investments in renewable energy, he notes, are projects of significant size, effective design and construction processes, high-level financial structuring, and a good understanding of power purchase and sale transactions.
The CEIF invests in solar power plants and wind farms as well as energy storage systems. The total installed capacity of its portfolio is expected to reach about 600 MW. The fund invests in both ready-to-build and late-stage renewable energy projects, and in projects that are already under construction. It has a planned investment period of 5 years and a lifetime of 10 years. The CEIF launched in March 2023 and held its first closing in May 2023 with EUR 85 million of investor commitments from the European Investment Fund (EIF) and Baltic pension funds.