Five years after investing in it for the first time, Migdal Insurance will invest an additional 80 million euros (NIS 295 million) in the Danish investment management firm CIP (acronym for Copenhagen Infrastructure Partners), which operates in the field of renewable energies.
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In this way, Migdal’s total investment in CIP will be NIS 1.5 billion. The investment will be made into the Energy Transition 1 Fund, which manages € 3 billion, and focuses on projects to reduce carbon emissions and reach zero emissions. Among other things, these are projects of green financing production and follow-up products, which are expected to reach a share of 20% -15% of the global energy market in 2050.
The reason for the increase in investment lies both in Migdal’s belief in the field of renewable energies and in the return that the investment has generated so far. In 2017, Migdal invested € 150 million in CIP’s third fund, which manages € 3.5 billion. This investment has so far yielded the Tower an internal annual return (IRR) of 17%. In 2020, Migdal also invested 200 million euros in CIP’s fourth fund, which manages 7.3 billion euros. CIP, founded in 2012, manages 16 billion euros in 8 funds. The investment in CIP is the third largest investment in Migdal’s renewable energy and infrastructure portfolio, a portfolio worth NIS 11.5 billion – the largest of the investment portfolios of Israeli institutions in the field.
The largest investment in it – NIS 3 billion – is in the infrastructure investment fund of JPMorgan Bank. Last August, Migdal deepened its cooperation with the bank, announcing an investment of up to NIS 800 million for 9% of the green energy company Sonnedix, which is controlled by the JPMorgan fund. Another major investment – of up to NIS 2 billion – is in Doral’s renewable energy operations in the United States.
Migdal Sagi CEO Yogev said that “we are deepening our ties with the Copenhagen firm and now we are choosing to invest in the field of reducing emissions, which is gaining momentum.”
Meanwhile, Migdal announced that Erez Migdali will be appointed the company’s chief investment officer. Migdal’s investment division manages about NIS 350 billion. Towers is currently serving as acting director, after Guy Fischer ended his term in December. Migdali, 43, has held senior positions in the investment division for the past nine years. He served as the company’s non-marketable investment manager – a position in which he was one of the leaders in renewable energy and infrastructure investments – a peer investment manager and a peer trading room manager at Migdal’s institutional entities.