Italian energy efficiency investment specialist FIEE has hit a €127.5m first close for its new fundraise thanks to backing from the European Investment Bank.
FIEE has a €175m target for Italian Energy Efficiency Fund II. EIB provided a €25m anchor investment in Fund I, and has increased that to €40m for the second vehicle.
Insurance company Aviva has made a €30m investment in the vehicle, doubling its commitment to Fund I.
FIEE said it planned to use the fund to extend its range of action to the rest of the European Union, and will be able to invest not only in service companies but also in equipment manufacturers, with a particular focus on smart cities and energy communities, in addition to pursuing selected initiatives in the renewable energy sector.
EIB vice president Dario Scannapieco said, “Italy has a lot to gain from investments in energy efficiency, as well as from the small-scale renewable energy projects that the fund will target.
“Furthermore, FIEE’s attention to projects in low carbon mobility, smart cities and digitalisation are a signal that this kind of investment is not only needed, but nowadays also makes economic sense.”
FIEE chief executive Raffaele Mellone said, “The target market has grown and strengthened considerably over the last four years.
“This growth will be intensified by the European Green New Deal, whose effects will begin to materialise over the next 12 months.
“We have been in the industry for many years now and we have never seen such excitement and so many investment opportunities.
“Within a few weeks of the first close of FIEE II we will complete the first transactions in the residential, energy community and HVACR sectors, allocating the first portion of raised capital.”
FIEE II will have a duration of 12 years, with a target return of 10-12%, to be achieved also through periodic cash distributions, and with lower risk than traditional private equity, the firm said.
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