Aquila Capital makes first close on renewable funds

Alternative asset manager, Aquila Capital, has reached its first close for its Renewables Fund III with a significant investment from a large institutional investor. The fund will invest in a diversified portfolio of photovoltaic and wind power plants in Europe of approximately €175 million.

The fund aims to generate stable, long-term cash flows, starting with a cash flow of 4% in its first year, and an internal rate of return (IRR) of 6-7%. Aquila said that a second close for the fund is expected to take place in September this year. Aquila Capital chief executive officer, Roman Rosslenbroich, said: “The first closing of ARF III reflects Aquila Capital’s ability to cater to the growing demand by institutional investors for renewable infrastructure investment solutions and highlights the importance of having significant deal sourcing capabilities in order to avoid J curve effects and lengthy fund commitment phases. Investors looking to build a portfolio in renewable infrastructure need to diversify across asset classes, electricity markets and regulatory frameworks.”