Danish wind energy firm Vestas acquired a 25% minority stake in Copenhagen Infrastructure Partners, (CIP), the world’s largest dedicated fund manager in greenfield renewable energy infrastructure, according to the company's statement on Thursday.
Through this investment in CIP, Vestas aims to expand its renewable project development and invest in areas of the renewables value chain that lie beyond its existing activities.
The company aims to increase the current value of CIP's Assets under Management (AUM) estimated at around €14 billion ($14.05 billion) to €75-100 billion ($91 to $121 billion) by 2030.
"Vestas will acquire the ownership stake at a price of €500 million ($608 million), in the form of €180 million ($219 million) as upfront payment, and $320 million ($389 million) as an earnout," according to the statement.
The investment value stream will encompass investment management and optimization, including asset management and divestments to increase Vestas’ presence along the energy value chain beyond the current co-development and early-stage investment in renewables projects.
"This will see Vestas building a new pathway to value creation, whereby it will access the long-term returns generated by renewable energy projects," the company said.
As part of the agreement, Vestas will invest in a new Energy Transition Fund managed by CIP as an anchor investor.
The fund will focus on nurturing Power-to-X and other technologies, which will increase renewable energy deployment across energy systems.
By Gulsen Cagatay