Quercus Assets Selection, an investment company focusing on renewable energy, has announced plans to start two renewable energy infrastructure funds — growing its total funding portfolio to five.
The creation of these two new funds will aid the recently launched Quercus European Renewables fund in order to help maximize the portfolio's risk/return profile through diversification.
Quercus is planning to generate a minimum combined target of €500 million (US$546 million) across all three funds, which is set to be invested in connected wind and solar plants in Italy, as well as in other renewable sites across Europe.
Diego Biasi, co-founder and CEO of Quercus, said: “We look forward to further building on 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.”
In particular, the Quercus Italian PV fund boasts a fundraising target of €150 million (US$163.8 million) and plans to focus on solar projects throughout Italy.
The Quercus European Renewables fund will invest in multi-technology assets with a minimum threshold of €200 million (US$218.5 million), and is set to invest in the production facilities of multiple renewable energy sources across Europe.
In addition, Quercus is also rolling out the Quercus Italian Wind fund, which will have a fundraising target of €150 million.
The funds will boast a long-term investment horizon of a minimum of 10 years and a planned Internal Rate of Return (IRR) per year of 8-10%.