- Commitments lead to increase in fund volume to EUR 313m
- Several repeat investors support the fundraising as well as a number of new investors, incl. the European Investment Fund (“EIF”) whose investment is backed by the InvestEU programme and the REPowerEU initiative
- The fund is categorised as an SFDR Article 9 fund (“dark green”)
- Investment focus is on energy infrastructure investments, mainly energy production but also energy transition and storage, with attractive risk-adjusted returns and superior sustainable characteristics
Prime Capital AG, the alternative asset specialist, with a focus on Continental Europe that has EUR 4.3bn Assets under Management as well as EUR 8.4bn Assets under Administration across different asset classes, announces the 3rd closing of its Prime Green Energy Infrastructure Fund II (“PGEIF II or “Fund”). This Fund continues the strategy of its predecessor, Prime Green Energy Infrastructure Fund (“PGEIF”), which is exceeding its target return substantially by several percentage points based on current market data.
PGEIF II focuses on renewable energy projects across Europe, with a focus on Scandinavia. Total commitments now stand at EUR 313 m, with around 45% from existing investors and 55% from new investors. The target size of the Fund is around EUR 700 m; current interactions with a significant number of investors keep the fundraising target well on track.
The Fund continues Prime Capital’s existing strategy in renewable energy, with a focus on the lowest LCOE (levelized cost of electricity) assets in combination with highly attractive, low-risk investments in the growing energy transition market. The net IRR target is 10 – 12%, with an expected money multiple of around 2x (basic term of 10 years). The Fund has already secured a pipeline of over EUR 600 million in assets, with the bulk in onshore wind.
Prime Capital is one of the largest investors in the Scandinavian onshore wind segment and will increase its position with the assets secured for PGEIF II. To date, the company has successfully completed 45 equity transactions.
In its first fund, the renewable energy projects have a capacity of 1.3 GW under construction or in operation, which corresponds to an annual generation of approximately 4 TWh of green electricity. Prime Capital achieved a rapid full deployment of fund commitments in just over 2 years.
For PGEIF II, investments in regions with low LCOE assets continue to be the focus and will also extend e.g. into the Spanish market. In addition, co-located battery storage projects will be included for further diversification as well as selective value-accretive energy transition assets, e.g. for the production of green fuels. Given its exclusive focus on sustainable energy markets, the Fund has a significant positive impact on the EU climate change targets and – like its predecessor fund – has been classified as an Article 9 (“dark green”) fund, according to the requirements of the EU’s Sustainable Finance Disclosure Regulation (SFDR).
“The idea of launching our series of Prime Green Energy Infrastructure Funds arose many years ago”, says Dr Mathias Bimberg, Head of Infrastructure. “Following our pan-European investments in the early days of our activities, we focused on the Nordic region for our first fund. Our greenfield build-to-core strategy, coupled with economies of scale achievable and the region’s excellent wind resources, enables us to achieve superior market returns. With our second fund we will continue to focus on this region but will also invest in strong wind and solar regions across Europe”, he adds.
“PGEIF launched in 2020 as well as our current fund PGEIF II are important steps in the evolution of our energy infrastructure strategy, which we started more than 10 years ago,” says Dr Werner Goricki, CIO. “We have carefully expanded our team over the years, including technical experts, engineers in fields like wind energy, chemical engineering, electrical engineering as well as project managers. Our proven set-up allows us to invest in the whole value chain of energy infrastructure, including energy production, energy transition and energy storage.”
“Energy infrastructure remains a topic of central importance in our investment activities, on the equity side as well as the junior debt and senior debt side. We are very pleased to have achieved three closings in the current demanding environment and are planning further fundraising. Particularly pleasing is that we were able to attract EIF’s support with a commitment of EUR 100m as well as the support of a number of new investors, both nationally and internationally, who are committing capital for our integrated approach to the modern energy infrastructure chain”, concludes Andreas Kalusche, CEO.
EIF Chief Executive Marjut Falkstedt added on the back of the investment: “Prime Capital’s second green energy infrastructure fund is perfectly aligned with our goals to promote strategic and sustainable investments. This investment will accelerate the shift to renewable energy in Europe, contributing to its energy autonomy as well as to the fight against climate change.”
About Prime Capital:
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Founded in 2006, Prime Capital AG is an independent asset management firm and financial services provider, owned by management and employees. The company takes a holistic, cross-divisional approach and specializes in Alternative Investments, in particular in Absolute Return, Infrastructure including Renewable Energies, and Private Debt. Furthermore, the company offers Access Solutions. Prime Capital was founded in 2006, currently employs about 125 people in Frankfurt and Luxembourg and is regulated by BaFin and CSSF.
As of June 2024, Prime Capital has approximately EUR 4.3 bn Assets under Management as well as EUR 8.4 bn Assets under Administration.
For additional information, quotes or requests please contact:
Prime Capital AG
Andreas Kalusche, CEO
Questions regarding the content please contact Dr Mathias Bimberg or Sarah Kraft
Tel: 0049 69 9686 984 308 or 0049 69 9686 984 27
Mathias.bimberg@primecapital-ag.com
Sarah.Kraft@primecapital-ag.com