EQT targeting new €1.5bn infrastructure fund

The infrastructure arm of the Swedish private equity firm is in the market for a follow-up to its debut €1.2bn infrastructure fund which it closed in 2008. On completing its most recent deal in December, that fund was around 85% invested.

EQT Infrastructure, the infrastructure arm of Swedish private equity firm EQT, has launched a new fund with the aim of raising €1.5 billion, according to market sources. The firm has not yet returned calls seeking comment. 

The launch of the fund had been widely tipped, given that the predecessor vehicle – which closed on €1.2 billion in 2008 – was reported to be around 85 percent invested last month. This followed the firm’s acquisition of Fortum’s outsourced energy solutions and small-scale heating businesses in Finland and Estonia in a €200 million deal.

The Fortum deal climaxed a busy year for EQT Infrastructure in which it also invested in Spanish car park operator Acciona Aparcamientos, Dutch oil storage business Argos Terminals, Swedish gas network E.ON Gas Sverige and US natural gas storage company Peregrine Midstream Partners.

The firm’s first infrastructure fund was set up to invest primarily in Northern and Eastern Europe and North America but with an option to invest globally. Target sectors included power generation, electricity and gas networks, airports, rail transportation and ports. According to Infrastructure Connect, investors in the first fund included the likes of AUSCOAL Super, Pantheon Ventures and West Midlands Pension Fund (see here).   

EQT Infrastructure was one of a number of marquee names thought likely to return to market during 2012. French fund managers Cube Infrastructure and Antin Infrastructure Partners are among other firms expected to launch new vehicles.

Dutch fund manager DIF launched its third fund in November 2011 with a €600 million target, while US-based Global Infrastructure Partners held a $3 billion first close on its second global fund in December.