Luxembourg-based Alcazar Energy Partners II SLP (SCSp) has closed its $490 million fund dedicated to sustainable infrastructure. Since its first closing in November 2022, the fund has attracted eight additional leading investors, including the U.S. International Development Finance Corporation (DFC). With a strong group of private and public investors, 80% of whom have AA or AAA ratings, AEP-II aims to develop over 1.6GW of clean energy projects in emerging markets, reducing greenhouse gas emissions by over 3 million tonnes per year and creating long-term employment opportunities.
Fund objectives and impact
AEP-II focuses on the development of large-scale renewable energy projects in regions historically underserved by the traditional investment community. Projects, such as the two wind farms in the Western Balkans totalling 456MW, aim to improve the energy mix and meet energy transition targets while generating local employment.
Strong, diversified support
Fundraising for AEP-II was supported by high-level public and private investors from North America, Europe, the Middle East and Asia. Daniel Calderon, co-founder and managing partner, said that this success, despite difficult market conditions, is recognition of the strength ofAlcazar Energy ‘s offering and its ability to lead the development of clean energy projects in emerging markets.
Alcazar Energy’s Vision
Alcazar Energy, with an advisory team based in Dubai, is committed to investing in large-scale renewable energy projects in emerging markets. Following the success of its first investment vehicle, Alcazar Energy Partners I (AEP-I), the company has launched AEP-II, attracting leading investors from around the world. AEP-II plans to mobilize around $2 billion in foreign direct investment, including project financing). This played a key role in the successful fundraising for AEP-II, reflecting investors’ confidence in the company’s ability to generate sustainable returns while making a positive contribution to local communities and the global environment.
Outlook for Renewable Energy in Emerging Markets
Alcazar Energy’s AEP-II fund is well positioned to continue investing in key renewable energy projects, supporting the energy transition in emerging markets. These investments will play a crucial role in reducing greenhouse gas emissions and creating new economic opportunities in underserved regions. The final closing of Alcazar Energy’s AEP-II fund represents a major milestone in the financing of renewable energy projects in emerging markets.
