Quercus Assets Selection has announced plans to launch two new renewable energy infrastructure funds, bringing the total number of funds in its portfolio to five.
The launch of the two new funds will complement the recently launched Quercus European Renewables fund to maximize the portfolio's risk/return profile through a meticulous strategy of diversification.
Quercus is looking to raise a minimum combined target of €500 million (US$551.7 million) across the three funds, which is to be invested in connected wind and solar plants in Italy, as well as in other renewable technologies throughout Europe.
More specifically, the Quercus Italian PV fund has a fundraising target of €150 million (US$165.5 million) and is focused geographically on Italy with the aim of creating a high quality portfolio of photovoltaic plants.
The Quercus Italian Wind fund has a fundraising target of €150 million (US$165.5 million) and will invest in existing Italian wind plants over the next two years to build a portfolio generating 300MW.
The Quercus European Renewables fund invests in multi-technology assets with a minimum target of €200 million (US$220.7 million) to be invested in production facilities of various renewable energy assets across Europe.
The funds will have a long-term investment horizon of a minimum of 10 years and a targeted Internal Rate of Return (IRR) per annum of 8-10%, rising to 9-11% in the case of Quercus Italian Wind fund.
Investment in renewable infrastructure provides stable, long-term returns with a low risk profile that generates sustainable and predictable cash flows de-correlated from the fluctuations of financial markets. The funds therefore represent an ideal investment for long-term institutional investors, whose investment style is characterized by risk aversion and the need for capital protection.
Vito Gamberale, Chairman of Quercus commented:
"Today, Italian renewables play a key role that I define with 3Ps: Predominant, Prevalent and Preferential. The Italian market remains extremely fragmented and presents significant opportunity for consolidation. Quercus is looking to capitalize on this opportunity to become a medium to large-scale operator of renewable energy plants in Italy. Our strategy is clear, our goals are achievable and I look forward to contributing to the success of our new funds at Quercus."
Diego Biasi, co-founder and CEO of Quercus commented:
"We look forward to further buildingon our established track record through the launch of two new funds. In addition to generating attractive returns de-correlated from the fluctuations of financial markets, these projects offer a safeguard from market shocks and provide capital protection as well as stable, long-term cash flows. Quercus funds are therefore an ideal investment for pension funds, foundations, banks, and qualified investors. Our knowledge of the market means that we can rapidly source and identify the best opportunities in order to optimize the asset allocation of the portfolio."