DG Infra targets €400m in direct investments

The Gimv, Belfius joint venture will complement its fund manager activities with the financing of infrastructure projects from its balance sheet.

Benelux-based DG Infra has received a boost from its sponsors to accelerate its investments in infrastructure projects, it announced in a press release.

The fund manager, a joint venture formed in 2007 by Belgian infrastructure lender Belfius and private equity firm Gimv, will aim to invest €400 million over the next five years. The additional funds will be made up of fresh allocations from both sponsors as well as contributions from external investors.

The new investments will be funded via the fund manager’s balance sheet, with a view to subsequent valuation. They will continue to focus on the Belgian and Dutch markets – although the firm intends to step up its presence in France and Germany – and will consist of equity capital or mezzanine financing within the €5 million to €50 million range.

The deals will add to the 20 participations already managed by the firm through its two existing funds, DG Infra+ and DG Infra Yield, which have a combined investment capacity of €300 million. DG Infra+ specialises in providing development capital to new, riskier projects while DG Infra targets more mature, cash-yielding infrastructure and real estate projects.

“In recent years, the mobilisation of private funding for the realization of infrastructure in the broadest sense has become a growing trend,” commented Manu Vandenbulcke, a managing director at DG Infra, in a statement. “ DG Infra aims to be a link between the financing requirements of infrastructure initiatives on the one hand and the mobilisation of long-term investment resources on the other hand, preferably in partnership with industrial and operational partners and public authorities.”

The vehicles’ latest deals comprise the Marche-en-Famenne prison, Belgium’s first prison public-private partnership (PPP), and thermal energy business Eteck, which DG Infra backed in September this year. The firm’s other assets include roads, tram and government building PPPs, as well renewables, healthcare, port infrastructure and business centres projects.