Paris-headquartered investor Omnes Capital is understood to be targeting EUR 500m of fresh commitments as well as a EUR 600m hard cap for its next energy-focused fund, which is due to launch in the third quarter of 2019.
Capenergie 4 is set to be double the size of Omnes’ latest Capenergie 3 fund and will invest at least two thirds of capital raised in greenfield renewable energy projects, Inframation has learnt.
About 10-15% of capital will be invested in projects in the development stage or not fully permitted.
The rest of the fund will be invested in brownfield projects, it is understood.
The 10-year Capenergie 4 fund will have two one-year extensions and like Capenergie 3 will target a 10% net IRR.
However, the fund manager must deploy 75% of commitments in its current Capenergie 3 before initiating the fundraising process, which it is aiming to achieve by the end of next quarter.
Capenergie 3 is currently 65% invested across nine different portfolios.
The new fund is notably likely to cap investments in France at 30%, compared to 50% in the Capenergie 3 fund.
Just like on Omnes’ previous funds, Capenergie 4 will meanwhile be able to take minority stakes in developers and in independent power producers.
It will target majority stakes when investing in joint ventures and in renewable energy assets.
The French investor will be looking into onshore wind, solar PV and mini-hydro plants.
However, it is understood that there are no restrictions on the amount the fund will be able to invest in these mature technologies.
Capenergie 4 will have the ability to look into other types of technologies like for example energy storage as far as it is integrated within an electricity generation project.
It is understood that Omnes, which is not expecting to use a placement agent, is hoping that the new fund will attract interest from their current investor base, including the EIB. They are also looking to attract some international institutional investors.
Omnes meanwhile on Tuesday (19 March) announced the investor returns for its second Capenergie fund.
The fund manager released a 15% investor net IRR for Capenergie 2 fund, their EUR 134m renewable energy dedicated fund launched in 2010.
Omnes Capital which declined to comment, has EUR 3.6bn assets under management across venture capital, buyout and growth capital and infrastructure with the team being spread across three European office: Paris, Brussels and Zurich.