Ancala holds €735m close on first Europe-focused vehicle

The UK-based manager believes mid-size infrastructure companies ‘have typically not received the full attention of their previous owners’.

London-based manager Ancala Partners has closed its first Europe-focused fund on €735 million, exceeding its target of €600 million.

Ancala Infrastructure Fund II is almost double the size of its first vehicle, which raised €400 million in January 2017 predominantly from UK investors, and focused on UK infrastructure.

Ancala said it received commitments from 30 LPs in Europe, North America, Australia and Asia, for the new vehicle. In a statement, the firm said it expects to deploy about €1 billion when co-investment capital is included.

Some €150 million has already been deployed in Dutch fibre-to-the-office business Fore Freedom, the UK’s Liverpool John Lennon Airport and Icelandic geothermal business HS Orka, the latter of which Macquarie Infrastructure and Real Assets had agreed a deal for in March last year, before being picked up by Ancala in May.

The fund is targeting net returns of 10-13 percent and a cash yield of 5-6 percent, which it said in a statement it is “comfortably exceeding” on its first fund. It added that it believes Ancala can add value to the mid-sized infrastructure companies it targets, which “have typically not received the full attention of their previous owners”.

Ancala had not responded to a request for comment at the time of publication.

In September last year, Ancala sold 21 solar parks in the UK to Arjun Infrastructure Partners, with the portfolio holding 97MW of capacity and storage capabilities. Ancala structured and financed the development of the portfolios in 2016 oversaw their operation, including the installation of utility-scale batteries across several of the sites. Infrastructure Investor understands the sale is believed to have generated significant double-digit returns well above its targeted rate.