DIF holds €1.4bn first close on sixth fund – exclusive

DIF Infrastructure VI, which was launched in November, is now 56% towards its €2.5bn target.

DIF Capital Partners has held a €1.4bn first close on its sixth flagship fund, Infrastructure Investor has learnt.

The Dutch manager is believed to have signed on the first close for DIF Infrastructure VI this week, about four months after it began speaking to LPs in November. The first close figure is slightly behind the €1.9 billion raised for DIF Infrastructure V in May 2018 and is 56 percent of its target of €2.5 billion.

The vehicle has secured commitments from LPs in Europe, North America and Asia, a source with knowledge of the fundraising said, despite the latter region being at the heart of the coronavirus outbreak during the first close fundraising period.

DIF Infrastructure VI will continue the strategy of its predecessors, a strategy which began in 2005, targeting public-private partnerships, renewable and utilities in both regulated and unregulated sectors. The fund targets gross returns of about 12-15 percent. It has not made any investments to date but is understood to have a pipeline of opportunities it is looking at.

DIF declined to comment on the fundraising.

DIF is also in market for the second instalment of its Core Infrastructure Fund strategy. Core Infrastructure Fund II is targeting €1 billion, more than double the €450 million raised for its predecessor. The fund is designed to target what the manager has described as “underserved areas” of the market.

DIF has also been preparing to enter the infrastructure debt market. As Infrastructure Investor revealed in December, Paul Nash is leading the firm’s efforts in this sector, which will have both a senior and junior debt focus.