Australia's CEFC, Palisade target $766m in renewables projects

Palisade and CEFC will make equity contributions of A$100 million and A$400 million, respectively. The GP's commitment will come from a combination of managed funds and direct investment mandate clients, such as VicSuper, LGIAsuper and Qantas Super. Palisade intends to launch a pooled renewable energy fund in the second half of 2016.

National Australia Bank and Commonwealth Bank of Australia will help provide debt financing for the projects.

The strategy is expected to deliver solar and wind generation projects throughout Australia with an initial capacity of up to 500 megawatts. CEFC's objective is to help close the funding gap for renewable energy. The government wants to achieve large-scale generation of 33,000 gigawatts by 2020, double the current levels. This would see about 23.5% of Australia's electricity come from renewable sources.

"Traditionally, institutional investors have tended to buy into built infrastructure projects. Through this strategy we are looking to attract investors at an earlier stage of project development, so we can more effectively accelerate the construction of commercially-viable projects. This means we can inject equity into projects at the time they need it most, so they can begin generating energy as soon as possible," Oliver Yates, CEO of CEFC, said in a statement.

Palisade specializes in mid-market infrastructure investments covering energy, utilities, social infrastructure, light rail and hospitals. It already manages two wind farms in South Australia - the 95 MW Hallet Windfarm and the 111 MW Waterloo Windfarm. LGIAsuper and Qantas Super are supporting expansion efforts.

The GP operates two open-ended funds as well as individual mandates from large LPs that operate alongside these vehicles.

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