FIH Partners advises CIP, the world’s largest dedicated fund manager within greenfield renewable energy infrastructure investments, on the divestment of a 25% minority stake to Vestas, a global leader in renewable power solutions.
Founded in 2012, CIP established the world’s first dedicated fund for utility scale greenfield renewable projects of EUR 1bn in cooperation with founding investor, PensionDanmark. Only eight years later, CIP now manages more than EUR 10bn of investor commitments with PensionDanmark as cornerstone investor in all funds and close to 100 blue chip investors from multiple countries. CIP aims to continue its rapid growth and increase the investment capacity for renewable investments globally.
The transaction enables CIP to accelerate this growth and increase investments into the global energy transition towards a net zero carbon economy alongside institutional investors in the CIP-managed funds.
With Vestas as a new minority owner, the parties will further develop their shared vision for the renewable energy market and continue to create innovative and attractive investment products for institutional investors globally with a significant contribution to the global climate agenda. Vestas and CIP will also collaborate on specific renewable projects. CIP expects to benefit from Vestas’ global market leadership in wind and strong position in the fast-growing new major economies in South East Asia, China, India, and Latin America, where Vestas has a strong local presence today. Approximately 2/3 of the global build-out of renewable power generation capacity is expected to take place in these economies over the next 20 years.
Vestas will pay a total consideration of EUR 500m, hereof EUR 320m as a potential earn out, for the 25% stake in CIP. The transaction is subject to customary conditions and approvals and is expected to close in early 2021.