Modus Asset Management Launches Clean Energy Infrastructure Fund with €85 Million Initial Closing, Backed by European Investment Fund and Baltic Pension Funds
Modus Asset Management, a firm officially authorized in the realm of fund management, has successfully concluded the inaugural phase of distributing its recently introduced Clean Energy Infrastructure Fund. This initiative, structured as a closed-end fund specifically for sophisticated investors, garnered a commendable €85 million ($91 million) in commitments at the first closing. Among the prominent participants were the European Investment Fund (EIF) and leading pension funds from the Baltic region.
Povilas Pečiulis, CEO of Modus Asset Management, emphasized that the management team has demonstrated exceptional proficiency in renewable energy investments. The fund boasts the highest sustainability ranking, classified as Dark Green, and it is aimed at long-term investment goals.
“The Clean Energy Infrastructure Fund is set to advance the region’s shift towards renewable energy by supporting local developers and creating a robust investment platform at an institutional level,” stated Pečiulis.
The fund plans to invest in various projects involving solar photovoltaic, wind energy, and combined battery storage across the Baltic States, Poland, and other parts of Central Europe. It has a planned investment period of five years and a total lifecycle of ten years, targeting projects that are either in the late-development phase, ready-to-build stage, or involve turnkey transactions, with an envisioned installed capacity totaling 600 MW.
Pečiulis noted that the completion of the first distribution phase underscores the appeal and stability of renewable energy infrastructure investments.
Marjut Falkstedt, Chief Executive of the European Investment Fund, remarked, “Contributing to the EU’s green transition is a top priority for the EIF, and we are delighted to contribute by investing in a fund that takes concrete and meaningful steps to achieve the EU’s climate objectives.”
Tadas Gudaitis, Director of Investment Management at Swedbank, Lithuania’s leading pension fund manager, added, “Investing in renewable energy mitigates the local generation deficit and enhances the resilience of economies and consumers to energy price fluctuations. Increasing generation capacity will also lower carbon emissions, providing environmental benefits and boosting the competitiveness of local businesses in the long term.”
According to Pečiulis, the fund is aiming for a target size of €200 million ($215 million), with a maximum limit of €350 million ($375 million).