DIF reaches €450m second close on Core Infra II – exclusive

DIF Capital Partners has held a second close on its Core Infrastructure Fund II, raising €450 million, Infrastructure Investor has learned.

The Dutch fund manager signed off the closing last week, bringing it almost halfway to its  €1 billion target, with a hard-cap set at €1.1 billion. DIF had held a first close of around €300 million a few months earlier.

CIF II is a follow-on from the strategy DIF launched in 2016, targeting what it sees as underserved areas of the market in the energy, telecoms and transport sectors through tie-ups with corporates. The fund targets gross returns of about 15 percent, with ticket sizes ranging between €20 million and €100 million. CIF I raised €450 million in November 2017, ahead of a €350 million target.

DIF declined to comment on the fundraising.

CIF II made its first investment last month, taking a majority stake in Canadian broadband business Valley Fiber. The group specialises in development of fibre connections to homes and businesses. The fund targets deals in Europe and Australia, in addition to North America.

Its predecessor completed 13 platform investments, including liquid oil storage company Unitank in Germany and Belgium, as well as liquefied natural gas tank ships in France.

DIF also remains in market for its DIF Infrastructure VI vehicle, the latest from its flagship series. The fund held a €1.4 billion first close in March and targets €2.5 billion.