INVL Asset Management, one of Lithuania’s leading asset management companies, has established INVL Renewable Energy Fund I (REFI), which will invest in renewable energy assets in the European Union, mainly in Poland.
The rules of the sub-fund intended for informed investors were approved by the Bank of Lithuania on 19 July. The fund targets EUR 60 million in assets under management, with the hard cap set at EUR 100 million, and a target net return to investors of 11%.
“We believe that the opportunity to invest in solar and wind power plants and thus not only contribute to solving climate problems, but also earn attractive returns and diversify their investments will be of interest to investors,” said Vytautas Plunksnis, Head of Private Equity at INVL Asset Management.
INVL Renewable Energy Fund I will focus on two of the most competitive renewable energy technologies currently available: continental wind and utility-scale solar farms in the European Union, with a primary focus on the Polish market.
“Poland is one of the main markets for the development of renewable energy projects in the European context. It is a deficit market with high electricity prices, heavily influenced by the price of CO2 emissions allowances. The Polish market recorded the highest wholesale electricity prices in the EU in 2020, and given the current balance of generation, it is clear that the trend towards high electricity prices will persist. This is particularly favourable for the renewable energy sector, which can offer electricity generation at lower prices and generate electricity without significant negative impact on the environment,” said Liudas Liutkevicius, Managing Partner of INVL Renewable Energy Fund I.
He added that investments in renewable energy would contribute to the minimisation of environmental impacts and strict compliance with environmental standards. The Fund’s team is not only interested in reducing CO2 emissions, but also in the overall impact on the environment in order to contribute to the European Union’s Green Deal goal of making Europe a climate-neutral continent with a circular economy by 2050.
In Lithuania, the Fund’s units are distributed by the brokerage firm INVL Finasta, with the minimum investment amount set at EUR 125 000. The duration of the Fund is 7 years. Invalda INVL Group jointly with sub-fund partners are investing EUR 1.3 million to this sub-fund.