Building on the successful strategy of SUSI’s first Renewable Energy Fund the successor fund invests in a geographically diversified portfolio of operational and fully permitted solar and wind power plants across Europe.
The SUSI Renewable Energy Fund II caters to institutional investors with a target return of 6-7% (net IRR) and regular annual distributions, and has a fund duration of 10 years with a defensive exit strategy.
Compared to the predecessor fund, Power Purchase Agreements will be negotiated more extensively. This together with the lower feed-in tariffs for new projects reduces regulatory risks significantly. Besides direct equity investment via the SICAV-SIF fund structure of Sustainable Sàrl (LUX) a securitization option is also being offered, which allows investors to book the fund in their fixed income quota.
The experienced SUSI investment professionals, already having acquired twelve project portfolios across five European countries for the first SUSI Renewable Energy Fund (IRR of the portfolio >8%), have managed to secure exclusivity on the initial project pipeline for the new fund, a portfolio of five large solar PV installations in France.
Dr. Tobias Reichmuth, CEO of SUSI Partners:
We have been able to establish strategic partnerships with project developers and energy companies in various European markets. This allows us to acquire attractive projects for our second fund which are not appearing on the market.
The fund, with a capacity of €300-400 million, has already been subscribed by investors of the first SUSI Renewable Energy Fund. The fundraising period will last until mid 2015.