May 2018

Infracapital concludes Fund III fundraising with commitments of £1.85 (€2.1) billion

Summary: Infracapital, the infrastructure equity investment arm of M&G Prudential, has successfully concluded the fundraising of its latest and largest fund to date, Infracapital Partners III (“Fund III” or “the Fund”), with total commitments equivalent to £1.85 billion (€2.1 billion). This close, at the Fund’s hard cap, exceeded Infracapital’s £1.5 billion target and, despite significant excess demand, ensures the Fund is optimally sized to implement its mid-market investment strategy.
  • Fundraising target exceeded in seven months
  • Increasingly global investor base, with particularly strong interest from Asia
  • Well-placed to meet significant need for infrastructure investment in Europe

Fund III’s strategy is to deliver essential infrastructure to meet the changing needs of society and support long-term economic growth. The Fund will invest in and actively manage assets across Europe, predominantly in the transport, utilities, renewable energy and telecoms sectors. This strategy is underpinned by Infracapital’s proven ability to source attractive opportunities, enhance value through active management, and develop platforms with significant long-term growth potential.

There was a high level of interest in Fund III from both new and existing investors. New investors represented nearly half of the total commitments raised, building on very strong support from existing LPs (with re-ups totalling more than £1 billion). More than 30% of capital was raised from geographies outside of Europe, with particularly strong interest from Asian investors who represent over 40% of new commitments. More than 80% of capital was raised in euros, aligned to Infracapital’s continued European focus.

This represents Infracapital’s second oversubscribed raise within six months, following the £1.25 billion close of Infracapital’s inaugural Greenfield strategy, Infracapital Greenfield Partners I LP, which has a late development / construction phase investment focus.

Martin Lennon, co-founder of Infracapital, said:

“This fund marks the latest milestone of investing our clients’ capital in essential European infrastructure. As we enter our 16th year of managing third party funds, alongside our parent Prudential’s own funds, we see a market where the requirement for high quality, reliable, relevant and affordable infrastructure is as strong as it’s ever been. It is, simply, key to the future prosperity of a fast-changing Europe.”

Ed Clarke, co-founder of Infracapital, said:

“We are excited by the prospects for Infracapital Partners III as we look not only to continue to deliver attractive returns to our investors but also to provide the first class essential infrastructure that communities deserve now and in the future."

Campbell Lutyens acted as exclusive placement agent for the fundraising with Hogan Lovells providing legal advice.

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