Vestas Invests in Copenhagen Infrastructure Partners
Vestas has invested in Copenhagen Infrastructure Partners, one of the world’s largest dedicated fund manager in greenfield renewable energy infrastructure,
Vestas has invested in Copenhagen Infrastructure Partners, one of the world’s largest dedicated fund manager in greenfield renewable energy infrastructure, to acquire a 25 percent minority stake in the investment management company. With the investment, Vestas seeks to create value across a wider range of the renewable value chain. Through its investment in CIP, Vestas aims to further expand its presence in renewable project development, and invest within areas of the renewables value chain that lie beyond its existing activities. This will see Vestas building a new pathway to value creation, whereby it will access the long-term returns generated by renewable energy projects. This value stream will encompass investment management and optimisation, including asset management and divestments, thereby increasing Vestas’ presence along the energy value chain beyond the current co-development and early stage investment in renewables projects. The investment also marks a key milestone in Vestas’ overall growth journey, which includes an increased focus on development through the launch of a new dedicated development business unit.
CIP’s business model focusses primarily on raising long-term institutional capital and nurturing and de-risking large-scale complex energy infrastructure projects, from project origination, investment selection, through to construction and asset management. Vestas and CIP will collaborate on certain projects in the early phases of the development cycle, but Vestas will not grant CIP any other preferential consideration as a customer in regards to Vestas’ development pipeline and/or turbine sales.
As part of the agreement, Vestas will invest into a new ‘Energy Transition Fund’ managed by CIP as an anchor investor. The fund will focus on nurturing Power-to-X and other technologies that can further increase the deployment of renewable energy across energy systems.
Through representation on the CIP board, Vestas will engage in discussions around the strategic direction of CIP, but will not be involved in decision making at fund, investment, or project level, including selection of wind turbine suppliers. Vestas will retain the flexibility to work with other parties on development projects, including other wind energy developers, utilities and owners.
Vestas will acquire the ownership stake at a price of EUR 500 million, in the form of EUR 180 million as upfront payment, and EUR 320 million as an earnout.