Capital Dynamics Exits Third Clean Energy Fund

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    Stockholm (NordSIP) – According to a report by the International Energy Agency (IEA), the world must double the rate of transition to renewable energy to have any chance of achieving net zero carbon by 2050.

    To address this issue, Capital Dynamics, a private asset manager and an early signatory to the UN Principles for Responsible Investment (UNPRI), has been investing directly in clean energy in Europe since 2013. It currently owns and operates over 30 projects with a combined capacity of over 1GW. On January 17th, Capital Dynamics announced the completion of Capital Dynamics Clean Energy and Infrastructure III LP (“CEI III”), the platform’s inaugural European-only renewables fund focused on delivering a specialised and value-add strategy for its investors.

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    The exit was formalized following the completion of the sale of a 27.5 MW onshore wind portfolio in the United Kingdom consisting of three assets located in Fife, County Durham and Bedfordshire. Capital Dynamics’ Clean Energy platform began acquiring greenfield assets for CEI III in 2015, all of which qualified for ROC government subsidies and managed the construction and subsequent operations of the assets over the last 6+ years.

    The asset manager’s Clean Energy platform makes direct equity investments in carbon-reducing, renewable power-generating projects from late-stage development through commercial operations. The Clean Energy team, including our dedicated asset management affiliate, Netro Energy, is comprised of over 35 specialized professionals with global capabilities, sector expertise and an extensive industry network.

    “The sale was an extremely successful outcome for our investors, as well as proof-of-concept for our value-add investment strategy in Europe in general,” said Barney Coles, Co-Head of Clean Energy at Capital Dynamics. “The UK continues to be one of the most attractive and supportive markets globally for investment in new renewable energy capacity. We remain focused on our mission to provide investors with attractive and environmentally sustainable returns.”

    Asset management services for the portfolio during construction and operations were provided by Netro Energy Ltd, Capital Dynamics’ dedicated asset management affiliate. TLT acted as legal counsel to Capital Dynamics on the transaction, while EY served as financial advisor. DNV provided technical advice on the transaction.

    “As part of its response to the risks of climate change, Merseyside has been committing capital in support of the energy transition across a range of opportunities.  CEI lll was one of our earlier investments and we are very pleased with the investment returns achieved on behalf of our pension members and, as importantly, the green infrastructure that has been commissioned and constructed.  This return of capital can be recycled into new projects to deliver investment returns and further our net zero ambitions,” Merseyside Pension Fund, an early investor in CEI III, said.


    Image courtesy of Aline Dassel via Pixabay
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