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Antin to launch Fund II by year end

The French infrastructure fund manager is gearing up to launch the follow-up to its first, €1.1bn debut vehicle – which is close to being 75% invested. Fund II will be roughly the same size as Fund I, although Antin said ‘there is room for us to increase the size of a second fund’.

Antin Infrastructure Partners (Antin), the French infrastructure fund manager, is preparing to launch a follow-up fund to its debut, €1.1 billion infrastructure vehicle later this year, chief executive Alain Rauscher and managing partner Mark Crosbie told Infrastructure Investor in an exclusive interview.

“We are about two-thirds invested for Fund I and we have a 75 percent investment threshold which triggers the launch of a second fund. So we are not quite there yet, but given the current pipeline, we expect to be there in the next few months and consequently go to market with the new fund by the end of this year,” Rauscher said.

Antin finished raising its first infrastructure fund in late 2010, bagging €1.1 billion from 35 investors based in Scandinavia, France, Germany, Switzerland, the UK, Canada and Australia. And while Antin’s management duo admits there is room to grow Fund II, they aim to keep their new fund broadly within the same range.

“I think that at the end of the end of the day you need to have a fund size that you will be able to deploy – and deploy earning the sort of returns that we set out to earn. Our size category at the moment is to write equity cheques of between, say, €75 million to €150 million. We could invest up to €200 million for particular cases,” Crosbie explains, adding:  “We’ve seen some 60 deals that have fallen into this range for each of the last four years. And these are not deals that we’ve just glanced over – these are deals we’ve taken a look at in some detail.”

“In some of our assets we have full ownership and in others significant minority stakes with another fund where we have joint control (through the agreed governance). Clearly, for assets that fall into the latter category, we could have deployed a larger equity cheque for 100 percent if we had had a larger fund,” he muses.  

“So I would say that there is room for us to increase the size of a second fund and yet remain in the same universe of deals. But obviously, we wouldn’t want to oversize our second fund, because then you fall into a different category, with potentially fewer opportunities,” Crosbie concluded.

*To read our full interview with Alain Rauscher and Mark Crosbie, be sure to check the May issue of Infrastructure Investor magazine, or click here.