Modus Asset Management, a licensed investment fund management company, completed the first phase of the distribution of the newly launched Clean Energy Infrastructure Fund, a closed-end investment fund for informed investors. The Fund attracted EUR 85 million in investor commitments in the first closing, led by European Investment Fund and Baltic pension funds.
Povilas Pečiulis, CEO of Modus Asset Management, says that successful completion of the first stage of distribution shows attractiveness and resilience of renewable energy infrastructure asset class. “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. Commitments from the European Investment Fund and Baltic institutional investors allow us to expand the region’s renewable energy capacity further and significantly contribute to accelerating this process,” says the head of Modus Asset Management.
“We are delighted to support the Clean Energy Infrastructure Fund focusing on investments in Central and Eastern Europe, where there are significant investment needs in the area of renewable energy,“ said EIF Chief Executive Marjut Falkstedt. “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. This agreement was made possible with the support of the “InvestEU” program, an innovative and powerful tool helping to channel financing towards a greener economy.”
“Our objective is to responsibly manage the assets held in Swedbank’s pension funds, aiming to drive sustainable investments, generate investment returns, and deliver long-term benefits for our clients and society. This approach contributes to addressing global challenges effectively. 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,” says Tadas Gudaitis, Director of Swedbank Investment Management.
According to Mr. Pečiulis, the Fund’s management team has a solid track record in investing in renewable energy. Clean Energy Infrastructure Fund is the fourth renewable energy fund launched by Modus Asset Management. The Fund, which will invest in the Baltic States, Poland and other Central European countries, has the highest sustainability rating of Dark Green financial product and is focused on long-term investments. The Fund’s investment period is five years, and its life cycle is ten years. The Fund has a target size of EUR 200 million and hard cap of EUR 350 million. “By qualifying as a Dark Green fund, we will not only provide attractive investment opportunities for institutional investors, but we will also contribute to creating a better environment and encourage other market players to move in this direction,” says Mr. Pečiulis.
Clean Energy Infrastructure Fund will invest in solar PV and wind energy projects, as well as collocated battery storage. Total installed capacity of the Fund’s portfolio is expected to reach 600 MW. The Fund will target projects in late-development and ready-to-build stages, as well as turnkey transactions.