Aquila Capital has completed a first close for its third European renewables fund, with backing from a large institutional investor.
The Renewables Fund III, Aquila said, received a 鈥渉igh double-digit million鈥� amount of capital, which has been allocated to a diversified portfolio of photovoltaic and wind power plants in Europe.
Aquila said it has invested 鈧�175m in assets so far for the fund, which aims to return 6-7%. A second closing is expected in September.
Roman Rosslenbroich, chief executive of Aquila Capital, said investors looking to build a portfolio in renewable infrastructure need to diversify 鈥渁cross asset classes, electricity markets and regulatory frameworks鈥�.
The alternative investment manager said APG was not behind the commitment, despite having previously backed Aquila Capital.
Aquila Capital last month launched a fund to co-invest alongside APG in European hydropower infrastructure. APG only takes minority stakes in assets being acquired by Aquila, requiring the investment manager to find other co-investors for each deal.
The firm said it was targeting European institutional investors for the 20-year fund, offering access to an investment programme launched last year for the Dutch pension fund group.
, Aquila invested in 33 hydropower assets in Norway as a seed portfolio for the fund.
