HitecVision holds final close for New Energy Fund on EUR 875m hard-cap

Ero Partsakoulaki
12 August 2022

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Norway-headquartered sponsor HitecVision has held a final close for its New Energy Fund (NEF) on its EUR 875m hard-cap; the vehicle is its first non-oil and gas fund, with a focus on the energy transition.

The fund, defined as an Article 8 "light green" fund under the EU's Sustainable Finance Disclosure Regulation (SFDR), was oversubscribed and surpassed its EUR 500m target, according to an announcement from the GP.

The GP's previous vehicle, HitecVision VII, held a final close on its hard-cap of USD 1.9bn in April 2014, exceeding its USD 1.5bn target, according to Unquote Data. The fund, which has a traditional 10-year lifespan, launched in February 2014 and reached its hard-cap two months later.

Including this latest fund, HitecVision now manages EUR 7bn of institutional capital, according to the press release.

Investors
The fund's LP base comprises existing investors and a number of new blue-chip LPs from both Europe and the US. Among the fund's investors are public and private pension funds, financial institutions, sovereign wealth funds, university endowments, family offices and charitable foundations.

Specifically, AIMS Imprint (part of Goldman Sachs Asset Management), Ardian, Första AP-fonden (AP1), KLP, Los Angeles County Employees Retirement Association (LACERA), Manulife Financial Corporation and Sparebank1 Forsikring – several of which have a focus on sustainability and impact – are among the fund's LPs.

Investments
NEF will invest in companies that contribute to the energy transition from fossil fuels to a new energy system and a low carbon economy, which will need significant investment over the next decades, the GP said in a statement.

The fund is 60% deployed and has invested EUR 540m across three investments, the first of which was made in 2021 in the form of Norway-based renewable energy company Vårgrønn. During its investment period, the GP will aim to develop, construct, operate and finance green energy and infrastructure projects in the Nordic andBaltic markets, according to a statement. The GP has raised EUR 175m in co-investment capital for the company.

The GP invested in district heating provider Hafslund Oslo Celsio earlier this year. Through its investment, the GP hopes to contribute to the decarbonisation of Oslo via the realisation of the carbon capture project at the waste incineration facility. It has the capacity to capture 400,000 tonnes of CO2 per year.

In March, the GP invested in TrønderEnergi, a renewable energy company owned by 19 municipalities in Trøndelag and Norway's pension company KLP. Both the GP and TrønderEnergi hold 50% ownership in the company. The investment will see the establishment of a new renewable energy company and will see TrønderEnergi renamed. The project has an investment capacity of NOK 15-20bn (EUR 1.5-2bn) in the initial phase. The goal for the new company is to take a significant position in renewable energy production, electrification, and energy efficiency.

People
HitecVision − Ole Ertvaag (founding partner, CEO).