Quercus’ new €150 million fund supports wind farm development in Italy

By Lisa Kerner

Charlotte, N.C., June 8 – Quercus Assets Selection is launching a new fund targeting minimum investments of €150 million and aimed at institutional investors both in Italy and internationally. It is its third fund in the renewable energy sector, according to a news release.

Investors will be required to invest a minimum of €10 million.

The fund will build a “geographically diverse portfolio of Italian wind farms,” operational for two to five years, and generating a minimum of 20 MW to 25MW of electricity.

Initially, the fund will seek to invest in existing plants in central and southern Italy.

According to Quercus, the fund will have an investment horizon of 15 years, with an annual internal rate of return of between 9% and 11% expected over the lifetime of the plants.

“Italy possesses the seventh largest wind energy sector in the world and the market remains highly fragmented,” said Quercus cofounder Diego Biasi.

“The largest competitor holds a market share of only 13%, and approximately 50% of installed wind power is in the hands of small operators,” Biasi said. “The Italian market is therefore about to enter a phase of consolidation which presents some very interesting opportunities for Quercus.”

The first Quercus Renewable Energy Fund was launched in 2010, specializing in photovoltaic plants in Italy.

Quercus launched its second fund in 2011 that seeks to invest in multi-technology plants in Europe.

Based in London and Luxembourg, Quercus specializes in infrastructure investments with a focus on renewable energy.

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