Modus Asset Management has achieved a significant milestone with its Clean Energy Infrastructure Fund, raising €85m in commitments from informed investors during its initial closing. Spearheaded by the European Investment Fund and Baltic pension funds, this closed-end investment fund aims to support the development of renewable energy projects in the Baltic States, Poland, and other Central European countries.
The Clean Energy Infrastructure Fund will primarily focus on investing in solar photovoltaic (PV) and wind energy initiatives, along with battery storage facilities located alongside these projects. With an ambitious target of reaching a total installed capacity of 600MW, the fund aims to accelerate the transition to clean energy in the region.
The investment period for the fund spans five years, while its life cycle extends to 10 years. It seeks to identify opportunities in the late-development and ready-to-build stages, as well as turnkey transactions. By targeting these phases, the fund aims to support the swift implementation of renewable energy projects.
Povilas Pečiulis, Chief Executive of Modus Asset Management, expressed the fund's dedication to fostering the growth of renewable energy. He stated, “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 further highlighted the crucial role played by the European Investment Fund and Baltic institutional investors in expanding the region's renewable energy capacity and propelling the transition process forward.
Additionally, Modus Asset Management aims to ensure that the Clean Energy Infrastructure Fund qualifies as a Dark Green fund. By doing so, it not only offers appealing investment opportunities to institutional investors but also contributes to the creation of a better environment. The fund's commitment to sustainability aims to inspire other market players to follow suit and embrace similar environmentally conscious initiatives.
With a target size of €200m and a hard cap of €350m, the Clean Energy Infrastructure Fund is poised to continue attracting investments in subsequent closings. As it progresses, the fund will play a pivotal role in advancing renewable energy and establishing a greener future in the region.
