CDP Real Assets launches “FoF Infrastructures”, the new fund which aims to encourage the development of projects with environmental and social goals. The main reference sectors are the energy and digital transition, the circular economy (for example, biomethane plants) and renewable energies.
“Through the launch of FoF Infrastructures – he explained Giancarlo Scotti, CEO of CDP Real Asset and Real Estate Director of CDP – the CDP Group intends to contribute to generating positive environmental and social repercussions in our country, thanks to an investment strategy in the infrastructure sector focused on the development of sustainable projects, maximizing the multiplier effect of invested resources.
What does the new Fund of Funds launched by CDP do?
The FoF (Fund of Funds) operates through selective investment in reserved closed-end alternative investment funds (AIFs), with a greenfield component (new construction projects) and revamping (projects involving improvement and/or expansion investments) , promoting environmental, social and governance (ESG) features throughout the investment process, while monitoring and measuring the impact generated.
Le main purposes of the fund are:
- reduce the gap with the other main economies, directing investments towards the development of sustainable infrastructures;
- foster the growth of the national market for funds active in the sector, also by supporting newly established asset managers and vehicles;
- catalyze the resources of institutional investors in favor of projects that have a direct impact on the real economy and on the territory, making it possible to use capital in diversified instruments with returns appropriate to the risk profile.
The target budget of the FoF is 500 million euros. "The resources will act as a driving force for raising funds to maximize the total amount of investments activated in related projects", explains a note from the Cassa, adding that "in the implementation of the project, CDP Equity plays the role of cornerstone investor and advisor to the bottom".
The First Investment: 30 million in the Sustainable Securities Fund
Il first investment of the FoF Infrastrutture was approved yesterday, Tuesday 2 May, by the Board of Directors of CDP Real Asset SGR: 30 million euro in Sustainable Securities Fund (SSF), managed by Alternative Capital Partners. It is a closed-end securities AIF that falls into the first time team/first time fund category, i.e. management team and newly established fund. The objective of the SSF is to support the energy transition in Italy through small-medium sized infrastructure projects, especially greenfields (at least 70%), with a focus on energy efficiency, circular economy and renewables. The SSF is an Impact Investing fund that contributes to the mitigation of climate change, neutralization and stabilization of CO2 emissions.
