INVL Renewable Energy Fund I, which was established three months ago and which invests in renewable energy projects and is managed by INVL Asset Management, one of the leading asset management companies in Lithuania, raised an additional EUR 16.14 million from investors to hold a second close at EUR 34.6 million.
“Investors’ interest and confidence are encouraging, as are the results achieved in terms of raising capital. At the second close we have already surpassed half the fund’s target size of EUR 60 million. Renewable energy clearly has become an attractive investment alternative in recent times, and the current high prices for natural resources and electricity are further increasing the intensity of investments,” said Liudas Liutkevičius, the managing partner of the INVL Renewable Energy Fund I.
With the backing provided by investors, the fund will develop its activities investing in renewable energy projects in the territory of the European Union, currently with a focus on the Polish market.
“Ever since the fund was established, we have been building the infrastructure of the fund's partner network, which includes both project developers and support services – companies providing legal, financial, accounting, engineering and other services,” the managing partner of the fund said.
Since the fund’s inception, he said, an agreement has already been signed on the development of over 150 megawatts of early-stage solar farm projects on the Polish market. Active work continues on enlarging the portfolio and on other possible agreements as a basis for developing the project portfolio in Poland.
“It is important to note that not all of the projects in development will reach the construction phase, since some of them will not be granted grid connection capacity or will be dropped for economic reasons. Thus we are actively working with other potential partners and seeking to expand the portfolio of projects under development. We are also interested in projects in the Baltic countries and so invite renewable energy developers that operate in the Baltics to collaborate,” Liudas Liutkevičius said.
In its initial closing, the fund raised EUR 18.5 million from investors.
The fund has a target size of EUR 60 million, a maximum size of EUR 100 million, and an expected net return for investors of 11%. In Lithuania, the fund’s units are distributed by the financial brokerage firm INVL Finasta. The minimum investment amount is EUR 125,000. The duration of the fund is 7 years.
About the INVL Renewable Energy Fund I
The INVL Renewable Energy Fund I, established on 20 July 2021 by the asset management company INVL Asset Management as a sub-fund for informed investors, will invest in renewable energy projects (solar, wind) at the green field and brown field stage, including the construction of new power plants, the acquisition of existing power plants, the development and/or acquisition of the infrastructure necessary for the operation of power plants, and the effective management of existing power plants in the European Union, Great Britain, and member states of the European Economic Area.
The person authorised to provide additional information:
Liudas Liutkevičius, Managing Partner of INVL Renewable Energy Fund I