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Modus Asset Management’s clean energy fund raised 85 mln euro for renewable projects in Central Europe

Modus Asset Management, a licensed investment fund management company, specialising in renewable energy investments in the Baltic States, Poland and Central Europe, completed the first phase of the distribution of the newly launched Clean Energy Infrastructure Fund, a closed-end investment fund for informed investors.

The Fund attracted 85 million euros in investor commitments in the first closing, led by European Investment Fund and Baltic pension funds.

Povilas Pečiulis, CEO of Modus Asset Management, said that the successful completion of the first stage of distribution shows the attractiveness and resilience of the renewable energy infrastructure asset class.

renewable
Povilas Pečiulis, CEO of Modus Asset Management.

“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,” he said. “Commitments from the European Investment Fund and Baltic institutional investors allow us to expand the region’s renewable energy capacity further and significantly contribute to accelerating this process.”

“We are delighted to support the Clean Energy Infrastructure Fund focusing on investments in Central and Eastern Europe, where there are significant investment needs in the area of renewable energy,“ added EIF Chief Executive Marjut Falkstedt. “Contributing to the EU’s green transition is a priority for the EIF and we are very glad to be doing our part and investing in a fund that will make tangible and meaningful steps to meet the EU’s climate targets. This agreement was made possible with the support of the InvestEU program, an innovative and powerful tool helping to channel financing towards a greener economy.”

Clean Energy Infrastructure Fund is the fourth renewable energy fund launched by Modus Asset Management. The Fund, which will invest in the Baltic States, Poland and other Central European countries, has the highest sustainability rating of Dark Green financial product and is focused on long-term investments. The Fund’s investment period is five years and its life cycle is ten years. The Fund has a target size of 200 million euros and a hard cap of 350 million euros.

“By qualifying as a Dark Green fund, we will not only provide attractive investment opportunities for institutional investors, but we will also contribute to creating a better environment and encourage other market players to move in this direction,” concluded Mr Pečiulis.

Clean Energy Infrastructure Fund will invest in solar PV and wind energy projects, as well as collocated battery storage. The total installed capacity of the Fund’s portfolio is expected to reach 600 megawatts (MW). The Fund will target projects in late-development and ready-to-build stages, as well as turnkey transactions.

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