Fundraising

Circuitus targets €2bn with maiden fund launch – exclusive

The firm is eyeing a first close in June, following backing from industrial partners, as it focuses predominantly on European greenfield.

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London-based fund manager Circuitus Capital has begun fundraising for its first infrastructure fund, targeting €2 billion in commitments, Infrastructure Investor has learned.

The firm last month launched Circuitus Real Asset I, which has a hard-cap of €3 billion, four years after the establishment of the company. Circuitus was founded by construction and concessions groups Sacyr and Fininc, alongside chairman and former Deutsche Borse chief executive Carsten Kengeter and Niccolo Ragnini Kothny, Circuitus’s chief executive and managing director.

The fund is believed to be planning a first close of between €400 million and €450 million by June, with backing from Sacyr and Fininc, as well as commitments from institutional investors and family offices. The vehicle is set to target net returns in excess of 12 percent and has been seeded by Sacyr and Fininc with an 80 percent stake in the Pedemontana–Veneta highway PPP in northern Italy, which reached a €2.57 billion financial close towards the end of last year.

A large portion of Circuitus’s transactions is set to originate from the industrial partners’ pipelines, with around 70 percent of its investments planned to be in greenfield deals. It is thought to be planning average ticket sizes of between €200 million and €300 million in the energy, transportation and utilities sectors, largely through public tenders, while also providing significant co-investment opportunities. While two-thirds of its deals are expected to be in Europe, a third is set to be invested in Latin America, where both Sacyr and Fininc have a significant presence.

The fund has a 12-year tenure with a five-year investment period. It is expected to reach final close about 18 months after the first close. Citi is acting as placement agent for the vehicle.

Circuitus currently has a team of about 20 and appointed Paul Hatter as its chief operating officer in February, following 15 years in a similar role at UBS in London and Brazil.

The firm declined to comment for this story.