Modus Asset Management, a licensed fund management company, has completed the first phase of distribution of the newly launched Clean Energy Infrastructure Fund. Aimed at informed investors, this closed-end mutual fund has already received 85 million euros ($91 million) in investor commitments at first closing. The European Investment Fund (EIF) and the Baltic pension funds were among the leading investors.
Povilas Pečiulis, CEO of Modus Asset Management, stated that the management team has a solid track record of investing in renewable energy and the fund has the highest sustainability rating of Dark green financial products and is geared towards long-term investments.
“The Clean Energy Infrastructure Fund aims to accelerate the region’s transition to renewable energy by empowering local renewable energy developers and creating an institutional-level investment platform,” Pečiulis said.
The fund will invest in solar PV and wind energy projects as well as collocated battery storage in the Baltic States, Poland and other Central European countries with an investment period of five years and a life cycle of ten years. The target is late-stage development, construction-ready projects and turnkey transactions, where a total installed capacity of 600 MW is expected.
Pečiulis also said that the completion of the first sales stage demonstrates the attractiveness and resilience of the renewable energy infrastructure asset class.
“Contributing to the EU’s green transition is a priority for the EIF and we are very pleased to do our part and invest in a fund that will take concrete and meaningful steps towards achieving the EU’s climate goals,” said Marjut Falkstedt, Executive Director of the European Investment Fund.
“Renewable energy investments address the lack of local energy production and help build the resilience of economies and consumers to energy price shocks. Developing such generation capacity also contributes to lower CO2 emissions, which not only brings environmental benefits in the longer term.’ State of Lithuania.
According to Pečiulis, the fund has a target size of 200 million euros ($215 million) and a fixed ceiling of 350 million euros ($375 million).