DIF targets €5.5bn in dual fundraising – exclusive

The seventh vintage of its flagship DIF Infrastructure vehicle and third installment of its Core-plus Infrastructure Fund series expect first closes in June and April respectively.

DIF Capital Partners is set to begin a new round of fundraising for its two equity vehicles, targeting a combined €5.5 billion, Infrastructure Investor understands.

The Dutch fund manager is believed to be targeting €4 billion for DIF Infrastructure VII, its flagship fund series which began in 2005 as DIF PPP. DIF reached a final close for DIF Infrastructure VI on €3 billion in October 2020, exceeding its €2.5 billion target.

The strategy targets investments across Europe, North America, South America and Australasia in PPPs, energy, renewables and utilities, with a gross IRR of 12 percent to 14 percent and a net of 9 percent to 10 percent and ticket sizes ranging from €50 million to €400 million. A first close is believed to be planned for DIF Infrastructure VII in June.

DIF is also understood to be targeting €1.5 billion for the third iteration of its Core-plus Infrastructure Fund strategy, the first of which was launched in 2017 to address the telecoms, energy and transport sectors through smaller investments in a buy-and-build approach, with ticket sizes ranging from €30 million to €150 million. As with the DIF Infrastructure series, it invests globally, although is “ramping up in North America”, Willem Jansonius, who leads the CIF strategy for DIF, told Infrastructure Investor upon the €1 billion closing of CIF II last year.

CIF III, which is believed to be planning a first close by the end of April, targets gross returns of 15 percent to 18 percent and 11 percent to 14 percent net IRR.

Both strategies were acquisitive towards the end of 2021. Investing via DIF Infrastructure V, the flagship strategy secured the acquisition of a 90 percent stake in a student accommodation PPP in the UK, while CIF II announced investments in fibre broadband in the US and electric vehicle charging in Finland.

The dual fundraising approach was previously employed by DIF when both predecessor funds were launched in November 2019, with DIF Infrastructure VI closing seven months before CIF II. DIF also continues to fundraise for its maiden infrastructure debt strategy, DIF Investment Grade Infrastructure Debt Fund I.

DIF declined to comment on the fundraising.