Prime Capital Secures €313M for Green Energy Fund

• Prime Capital AG's Green Energy Fund II hits EUR 313M, targeting renewable projects in Scandinavia and Spain with promising returns and a robust investment pipeline.

Prime Capital AG has announced the third closing of its Prime Green Energy Infrastructure Fund II, raising a total of EUR 313 million (USD 340.1 million). This successor fund primarily targets renewable energy projects in Europe, particularly in the Scandinavian region, with plans to expand into Spain. It focuses on investments with low levelized cost of electricity (LCOE) and has a cap size set at EUR 700 million.

The fund has already secured a pipeline of over EUR 600 million, predominantly in the onshore wind sector, and anticipates a net internal rate of return (IRR) of 10%-12%. Existing investors contributed 45% of total commitments, while new investors, including the European Investment Fund with EUR 100 million, made up 55%. Additionally, Prime Capital plans to invest in co-located battery storage and green fuel production projects to diversify its portfolio.

What are the key features and objectives of Prime Capital's new energy infrastructure fund?

Here are the key features and objectives of Prime Capital's new energy infrastructure fund, Prime Green Energy Infrastructure Fund II:

• Focus on Renewable Energy: The fund primarily targets renewable energy projects, emphasizing sustainable and environmentally friendly investments.
• Geographical Emphasis: The initial focus is on the Scandinavian region, with intentions to expand into Spain, recognizing the growing demand for renewable energy in Southern Europe.
• Investment in Onshore Wind: The fund has a significant concentration on onshore wind projects, which are currently the most viable source of renewable energy in many European countries.
• Low Levelized Cost of Electricity (LCOE): The fund aims to invest in projects that demonstrate a low LCOE, enabling more competitive pricing for electricity and improving viability for future energy markets.
• Cap Size: The fund is capped at EUR 700 million, aiming to attract additional institutional and private investors for further growth.
• Strong Project Pipeline: With over EUR 600 million already in the pipeline, the fund is positioned to efficiently deploy capital into promising renewable energy projects.
• Projected Financial Returns: The fund anticipates a net internal rate of return (IRR) of 10%-12%, appealing to investors looking for sustainable yet profitable opportunities.
• Investor Composition: The funding structure indicates strong backing from existing investors (45% of total commitments) while also attracting new investors, including the European Investment Fund contributing EUR 100 million, thereby enhancing credibility and investment prospects.
• Diversity in Energy Solutions: In addition to wind projects, the fund plans to invest in co-located battery storage solutions and green fuel production, diversifying its investment portfolio and addressing various facets of the renewable energy landscape.
• Strategic Alliances and Partnerships: The fund seeks to forge partnerships with local developers and technology providers to enhance operational efficiency and project execution.
• Commitment to Sustainability: Beyond financial returns, the fund is dedicated to contributing to the European Union's climate goals by supporting the transition to renewable energy sources and reducing carbon emissions.
• Long-term Investment Horizon: The fund is designed for long-term investments, providing stability and sustained growth opportunities in the evolving energy market.
• Market Adaptable Strategy: The fund's flexible approach enables it to adapt to changing market conditions and emerging technology trends in the renewable sector.

Through these features and objectives, Prime Capital's Prime Green Energy Infrastructure Fund II is strategically positioned to capitalize on the growing renewable energy market while promoting a sustainable energy future.