(Bloomberg) -- Copenhagen Infrastructure Partners is planning to sell bonds backed by stakes in some of its private capital funds as managers look to attract new investors and bolster returns on their holdings.
CIP, which specializes in energy infrastructure, is working with Morgan Stanley on a collateralized fund obligation, according to people familiar with the matter. The transaction could be around $1 billion, said the people, who asked not to be named because the deal is private.
CIP and a Morgan Stanley representative declined to comment.
A CFO is a type of securitization that groups stakes of private capital funds into tranches of rated notes, allowing fixed-income investors including insurers to buy higher-rated parts of the debt. The market for CFOs could top $30 billion of new volume this year, up 50% from 2025, according to executives at Evercore Inc.
Asset managers including Ardian, Carlyle AlpInvest, Ares Management Corp., Dawson Partners, Coller Capital and Blackstone Inc. have marketed or sold CFOs in recent times.
CIP invests in solar and wind power generation as well as energy storage, transmission and distribution, advanced bioenergy, low-carbon fuels and carbon capture. The firm has raised about €37 billion since it was founded in 2012 and has projects in over 30 countries.
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--With assistance from Preeti Singh.
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