Aquila Capital has announced that its newly launched Aquila Renewables Fund III S.A. (ARF III) has come to its first close securing “a significant amount” from a large institutional investor.
The fund, which invests in a diversified portfolio of photovoltaic and wind power plants in Europe, pursues a conservative investment strategy and aims to generate early and stable current yield as well as an attractive overall return. ARF III is suitable for institutional investors who are seeking stable and predictable returns and who wish to diversify their portfolio to include European renewable energy assets but need expert managers to do so.
The fund has an existing pipeline of assets in which it can invest and has already secured a number of operating photovoltaic and wind power plants with a total equity volume of close to €175m.
The fund aims to deliver an IRR of 6-7% and long-term stable cash yields over the term of the investment.
“With a strong pipeline and investments into the first projects having been made already, the fund expects to generate cash flows of approximately 4% p.a. in its first year. A second closing is expected to take place in September,” the company said.
Roman Rosslenbroich, CEO at Aquila Capital, said: “The first closing of ARF III reflects Aquila Capital’s ability to cater to the growing demand by institutional investors for renewable infrastructure investment solutions and highlights the importance of having significant deal sourcing capabilities in order to avoid J curve effects and lengthy fund commitment phases.
“Investors looking to build a portfolio in renewable infrastructure need to diversify across asset classes, electricity markets and regulatory frameworks. Achieving such a diversified portfolio is complex, but Aquila Capital’s proven track record, extensive sector network and experience enable us to offer investors renewable infrastructure investment solutions that provide access to top-tier assets from day one.”