Copenhagen Infrastructure Partners closes $3 billion Growth Markets Fund II

Copenhagen Infrastructure Partners has reached a final close of approximately $3 billion for its second Growth Markets Fund, marking a sharp increase from its first fund as the firm expands its push into large-scale energy infrastructure in emerging markets.

The fund, known as Growth Markets Fund II, or GMF II, is focused on greenfield energy infrastructure across 15 select middle-income markets in Eastern Europe, Asia, and Latin America. According to CIP, the strategy is aimed at markets where rising electricity demand, economic growth, and infrastructure needs are creating opportunities for renewable power and storage projects.

GMF II has already committed about $1.6 billion across nine investments. CIP said the fund had total value exceeding paid-in capital at the time of final close and expects it to become fully committed within the next one to two years based on its current portfolio and near-term investment pipeline.

Niels Holst, Partner and Co-Head of Growth Markets Funds at Copenhagen Infrastructure Partners, said: "Reaching a $3 billion final close and tripling the fund size compared to our predecessor fund is a strong validation of our Growth Markets strategy and of investors’ confidence in our ability to originate, develop, and build large-scale renewable energy projects."

The fund has already backed several projects in key markets. In Chile, GMF II has commissioned what CIP described as the country’s largest standalone battery project, with construction completed below budget. In Mexico, the fund has started construction on what CIP said are the country’s first large-scale combined solar and battery storage projects after securing the largest capacity allocation under a recent binding planning framework issued by the Mexican government. GMF II has also reached financial close on Pestera II, an onshore wind development that CIP described as one of Romania’s largest renewable energy investments.

CIP said the investor base for GMF II includes sovereign wealth funds, pension funds, development finance institutions, and impact-focused family offices. Existing investors also returned for the new fund, while the firm expanded its limited-partner relationships across Asia, the Middle East, and North America.

Holst said: "For GMF II, we have been successful in attracting a diverse group of LPs including sovereign wealth funds, pension funds, impact-focused family offices, and Development Finance Institutions (DFIs), in addition to re-ups from existing LPs, expanding our outreach across Asia, the Middle East, and North America."

The new fund builds on CIP’s first Growth Markets Fund. The firm expects GMF I ultimately to deliver approximately 8.7 GW of energy infrastructure across more than 50 projects in India and South Africa. The second fund expands that approach into additional markets while keeping a focus on jurisdictions where CIP believes electricity demand and economic fundamentals support investment.

Target markets for the Growth Markets strategy include India, Vietnam, the Philippines, Mexico, and South Africa. CIP said it uses local teams and its broader global development organization to originate, develop, finance, and construct projects in those markets.

Founded in 2012, Copenhagen Infrastructure Partners manages 15 funds and has raised approximately €43 billion from more than 200 institutional investors. Its project portfolio spans more than 30 countries and is supported by a network of more than 2,300 professionals.

With roughly half of GMF II already committed, the firm is now focused on deploying the remaining capital across its targeted growth markets.

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