German independent asset manager Prime Capital AG has announced the third closing of its Prime Green Energy Infrastructure Fund II (PGEIF II), amassing total commitments of €313 million (approximately USD 340.1 million).
PGEIF II, a successor to the original Prime Green Energy Infrastructure Fund, is focused on investments in renewable energy projects throughout Europe, with a significant emphasis on the Scandinavian region. The fund aims to target assets in areas characterized by low levelised cost of electricity (LCOE), and it plans to extend its activities into the Spanish market as well.
With a total cap size of €700 million, PGEIF II already boasts a secured pipeline of assets valued at over €600 million, primarily within the onshore wind sector. The fund is projected to deliver a net internal rate of return (IRR) of between 10% and 12%. Notably, about 45% of the total commitments have come from existing investors, while the remaining 55% has been contributed by new investors. Among the newcomers is the European Investment Fund, which has pledged €100 million.
To further diversify its asset portfolio, Prime Capital plans to pursue co-located battery energy storage projects and initiatives aimed at producing green fuels as part of PGEIF II's strategic direction.
