Q-Energy closes fourth renewable energy fund at EUR1.1 billion
Q-Energy, a global investment and management company in renewable energy, has held the final closing of its fourth fund, Q-Energy IV, with an investment capacity of EUR1.1 billion in equity, which will allow the manager to mobilise more than EUR5 billion into the sector including debt.
Q-Energy launched its fourth fund in May 2020, and within two months it reached a First Closing of EUR360 million. Subsequently, it received commitments above its initial target size of EUR800 million, leading to its Final Close of EUR1.1 billion on 30 June 2021. Investors (mainly family offices, insurance companies, pension funds and university endowments) from European Union countries, the Americas, as well as Asia and Australia, have participated in the Fund. The investor base has expanded further in this Fund, giving entrance to a number of new international investors, adding to refreshed commitments from over 90 per cent of existing investors from previous Q-Energy funds.
“We are delighted to welcome almost all of our existing investors once again, as well welcoming new commitments from large international partners of prestige. We hope to continue creating great value for them all, while also continuing our efforts to deploy capital into the development of an economy that is more committed and respectful of the planet and future generations to come,” says Iñigo Olaguíbel, Managing Partner of Q-Energy.
The investment strategy of Q-Energy IV is a continuation of the strategy already proven in previous funds, though this time also expanding its geographical reach. Q-Energy IV will focus in developing new renewable plants, the repowering and modernisation of assets at the end of their useful life, as well as on securing the operational and financial optimisation of large plants in countries within the European Union. Additionally, the Fund will undertake other investments related to the energy transition such as energy storage, grid network management, hydrogen production and biofuels.
Q-Energy IV has also already begun investment deployment throughout the fundraising period. As of the Final Close, close to 60 per cent of the Fund has already been invested or committed to wind, solar photovoltaic (PV) or concentrated solar projects (CSP) projects, located in Germany, Poland, Italy and Spain. As of today, the Fund owns an aggregate of more than 400MW capacity in operational assets, in additional to a portfolio of assets under development of more than 8GW. As such, the Management team expects the Fund to be fully invested by the end of next year.
With this new Fund, Q-Energy consolidates itself as one of the main European players in the acquisition, operation, and development of solar PV, CSP, and wind assets, and will begin exploring complementary investment opportunities in energy storage, biofuels, hydrogen, and other such projects that will contribute significantly to overcome the challenge of energy transition that our societies face today. Since its inception, Q-Energy has invested more than EUR8.5 billion into the sector and has an overall portfolio under management of solar assets in operation of 1.2 GW, close to 300MW of wind power for repowering, and more than 8 GW in new developments.
Q-Energy has been advised by Linklaters (Tax Advisor) , Cuatrecasas (Legal Advisor) , EY, and FirstPoint Equity (Placement Agent).