Terra Firma, China Development Bank plan $5bn energy fund


Private equity group Terra Firma is expected to announce plans for a $3bn to $5bn energy infrastructure fund launched in partnership with the China Development Bank (CDB) at its annual investors meeting this week.

The new fund will be marketed in China, according to the Financial Times, however, the groups expect the bulk of clients to be based in the US and Europe.

The vehicle will invest in global renewable energy infrastructure projects and companies, a sector in which Terra Firma has made a number of successful investments.

Terra Firma’s existing funds, which have a combined €11bn under management, hold three renewables-focused companies already: US-based EverPower, UK energy supplier Infinis, and Italian solar company RTR.

Initial plans by Terra Firma to raise the funds in spring were put on ice, after the firm decided to take a more focused approach to fundraising centred on sovereign wealth funds.

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