New $460M Clean Energy and Infrastructure Fund

Switzerland-based private equity manager Capital Dynamics closed a clean energy and infrastructure fund (CEI Fund) at $462.5 million on Dec. 18. The fund will be managed out of its New York office by Capital Dynamics managing director John Breckenridge.

With the closing of the CEI Fund, Capital Dynamics has raised approximately $1 billion for its clean energy strategy since 2010, which includes its US Solar Energy Fund. Since 2012, the solar fund has committed over $280 million in equity capital to 40 solar PV projects located in five U.S. states and has already generated tax equity and related proceeds of over $110 million for its investors to date.

The CEI team has acquired, built and now manages more than 1,300 MW of clean energy capacity in North America, Europe and Australia, according to the firm.

The CEI Fund targets investments in proven technologies, such as biomass, landfill gas, small hydropower, solar, wind, gas-fired power and co-generation.

In 2014 through September, seven renewable-energy focused funds have reached a final close, raising an aggregate $1.4 billion, versus 21 funds that reached a final close in 2013 raising an aggregate $2.6 billion, according to research firm Preqin. Additionally, there were 357 renewable energy infrastructure deals in 2013 versus 213 year to date in 2014. The 2014 deal breakdown is: 46% in wind, 38% in solar, 10% in hydro, 3% in biomass/biofuels, 1% in geothermal and 2% in diversified renewable energy.

Large 2014 infrastructure fundraising includes Glennmont Partner’s Clean Energy Fund Europe II, which raised $608 million, and Zouk Renewable Energy & Environmental Infrastructure Fund II, which raised $267 million.

The top five strategic investors in renewable energy infrastructure deals from 2012 to 2014 were: EDF Group, E.ON, Duke Energy, DONG Energy and RWE Group.

Capital Dynamics CEI portfolio news includes:

– October 2014 – it completed the first phase of a 300-megawatt onshore wind project in Texas called Green Pastures.

– February 2014 – it announced its 21-megawatt Dunmore onshore wind farm in Northern Ireland was completed, operational and generating power. It is expected to generate enough electricity to power 17,500 homes – avoiding approximately 25,700 metric tons of greenhouse gas emissions per year, the equivalent of annual emissions from 9,200 passenger vehicles. The Capital Dynamics Clean Energy and Infrastructure (CEI) team successfully negotiated a 15-year power purchase agreement with a major U.K. power retailer.

– November 2013 – it acquired a 68-megawatt portfolio of biomass power plants located in northern New South Wales, Australia.

– January 2012 – it announced the successful acquisition of a 64-megawatt portfolio of U.K. landfill gas assets. The portfolio consists of 35 operating sites spread across England, Scotland and Wales that sell renewable electricity under long-term sales contracts with both U.K. government agencies and major U.K. energy suppliers.

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