FP Investment Partners and re:cap global investors ag announce the successful first closing of the FP Lux European Battery Storage Fund. Institutional investors from Germany have already made significant commitments to the specialized battery storage fund. The strategy provides pan-European access to attractive investment opportunities in battery storage systems and positions itself as one of the key drivers of the energy transition. FP Investment Partners acts as the fund’s initiator and distribution partner, while re:cap serves as exclusive investment advisor.
- With a target volume of EUR 500 million, the FP Lux European Battery Storage Fund has been successfully launched – leading German institutional investors participate
- The fund offers attractive, Europe-wide investment opportunities in battery storage systems – first investments in Germany and Finland already identified
- Battery storage systems are an indispensable core component of the European energy transition, providing greater grid flexibility and supply security
The fund pursues a balanced investment strategy in the field of battery storage energy infrastructure with a clear focus on European diversification. Geographically, the strategy concentrates on highly attractive core markets such as Germany, Scandinavia, Italy and the Netherlands – regions characterized by market scale, regulatory reliability and strong economic momentum. The first two investments in Germany and Finland have already been identified, allowing the seed investors’ capital to be deployed promptly into tangible projects.
Diversified revenue model as a success factor
The fund’s revenue model follows a broadly diversified approach, generating income from grid services, balancing energy markets, and trading on the day-ahead and intraday markets. This is complemented by strategically selected tolling agreements with creditworthy counterparties and by long-term, government-regulated remuneration mechanisms such as capacity markets. This structured approach enables the fund to leverage the full range of revenue potential offered by Battery Energy Storage Systems (BESS) in European energy markets—tailored to the optimal risk-return profile of each project.
The European BESS market is demonstrating exceptional growth prospects: between 2023 and 2030, installed BESS capacity is expected to increase sevenfold from 7 gigawatts to 51 gigawatts. By 2050, total investments are projected to reach EUR 78 billion. The strategy deliberately positions itself in the early phase of this expansion, enabling early investors to capture the most attractive returns.
Richard Zellmann, Managing Director and Partner at FP Investment Partners, commented: “We are extremely pleased with the successful first closing of the FP Lux European Battery Storage Fund – our gratitude goes to our early investors. With this solution, we consistently build on our long-standing investment philosophy in the field of energy transition and further expand the range of sustainable infrastructure investments. The fund provides institutional investors with an ideal complement to existing solar and wind farm investments, while also offering attractive return potential as a stand-alone solution.”
Thomas Seibel, CEO of re:cap global investors ag, added: “For 15 years, we have been successfully investing in innovative energy infrastructure projects while maintaining long-term partnerships with local project developers. BESS investments are particularly attractive as a hedge against negative power prices. The extraordinary growth prospects of the European BESS market make this fund a strategic investment opportunity in one of the most dynamic segments of the energy transition.”