Basalt more than doubles size of predecessor as Fund III hits $2.75bn hard-cap

The vehicle has made three investments to date after it acquired Xpress Natural Gas in the US last week.

Basalt Infrastructure Partners has closed its third fund on its $2.75 billion hard-cap, more than doubling the $1.3 billion raised for its second fund in 2018.

The firm reached the final close on Basalt III after launching the vehicle towards the end of 2019 with a $2 billion target, holding a first close in March 2020.

“We were pleased to have had that first close take place then and not a couple of months later, when investors started turning their attention to their portfolios,” Rob Gregor, managing partner at Basalt, told Infrastructure Investor.

The funds were raised from a total of 47 investors, predominantly from North America and Europe, where Basalt targets its investments, while it also raised commitments from Asia and the Middle East for the first time.

“We raised a lot more money from existing investors for Fund III than we did for Fund II,” said Gregor. “There’s a level of comfort people had with us and we were slightly sizing up the target of the fund.”

Basalt III has made three investments so far, acquiring UK-based Full Fibre in December, while in the US it invested in residential solar platform Habitat Solar and last week acquired Xpress Natural Gas, a provider of compressed natural gas where the fuel cannot be delivered by pipelines. Gregor explained the company was enabling clients in the US to transition to cleaner fuels and that conversations around climate change are directing parts of the firm’s strategy.

“You need to be aware of what you’re investing in and if it’s sustainable. You ask yourself a lot more searching questions today than you would have a couple of years ago and that will help define which sectors you focus on versus others,” he added.