New capital commitments from the CEFC and Australian superannuation funds increases ICG’s renewable energy fund size to $540 million
Australian infrastructure fund manager Infrastructure Capital Group (ICG) has raised over A$150 million for its newly launched Australian Renewables Income Fund (ARIF), including a record investment from the Clean Energy Finance Corporation (CEFC).
The $100 million investment from the CEFC is its largest equity investment in renewable energy to date, representing an almost 40 per cent increase in its renewables equity portfolio.
The additional capital commitments increase the size of ARIF to $540 million, making ARIF one of the largest renewable energy funds in Australia. ARIF is the third investment fund for ICG, Australia’s pre-eminent investment manager of renewable energy assets, which has invested in the renewable energy sector for over 12 years.
ICG Managing Director Tom Laidlaw said that ARIF provides investors dedicated exposure to renewable energy assets and a unique opportunity to invest in an existing renewable energy portfolio with a proven performance record.
“ARIF offers investors the benefits of expertise, diversification and scale in a fast growing and highly dynamic sector,” Laidlaw said.
“With the additional capital, ARIF is well poised to further diversify the existing portfolio of high-quality investments with a number of prospective investments identified across a range of renewable energy technologies.”
ICG Chief Investment Officer, Andrew Pickering says Australia’s expanding energy generation network is creating more opportunities for investors. Over 4GW of wind and solar committed projects are due to reach commercial operation over the next 24-36 months, requiring over $5 billion of investment.
“We are well placed to ensure that ARIF is able to source the highest quality opportunities in the market. We target successful outcomes for investors through quality asset selection and active asset management, capabilities acquired from decades working across every aspect of asset investment and operation,” Mr Pickering said.
ICG will continue to raise additional capital for ARIF from domestic and international investors during the course of 2019.