Norway’s $1.7 trillion sovereign wealth fund committed to invest €900 million ($1 billion) in Copenhagen Infrastructure Partners’ fifth flagship fund, the first time it will take an indirect stake for its unlisted renewable energy infrastructure portfolio.
The deal will allow Norges Bank Investment Management — which has so far been buying direct stakes in European solar and wind assets — to invest in renewable energy projects in the development stage, Mie Holstad, chief investment officer for real assets at the fund, said in a statement Monday. It will also give NBIM exposure to other parts of the value chain, and allow it to build knowledge and experience with new markets and technologies, she said.
The CI V fund will invest in renewable energy with a focus on offshore and onshore wind, solar farms, grid and distribution, and storage, Norway’s wealth fund said. The investments will be equally split between North America, Western Europe, and developed countries in the Asia Pacific region.
The agreement will boost NBIM’s renewable energy infrastructure portfolio from the $1.9 billion it held at the end of June. The fund began building out the portfolio in 2021 after getting the go-ahead from parliament the year before, with stiff competition and high valuations hampering the pace of its investments.
CIP manages 12 funds with about €28 billion under management.