Equitix, the UK developer and fund manager, has raised more than £100 milion (€113 million; $162 million) for its second fund, Equitix Fund II. In a statement, Equitix said further closes are expected through the third and fourth quarters of 2011 on the way to the fund’s final target of £150 million.
Since posting a first close on £70 million in January this year, the fund has added over £30 million in total from three new investors. The identity of the investors has not been disclosed but they are all UK corporate or local authority pension funds. Two of them were investors in Equitix Fund I, the firm’s debut fund which raised £104 million.
Fund II has already invested in six UK Private Finance Initiative (PFI) projects in healthcare, street lighting and integrated highways. Equitix is also part of the consortium that has been granted preferred bidder status for the Greater Gabbard offshore wind energy project, involving the construction of a £317 million transmission line.
Fund II is being raised with the help of placement agent Evercore Private Funds Group.
At first close in January, Evercore Private Funds Group CEO Richard Anthony told Infrastructure Investor: “A lot of other funds tie management fees to inflation but Equitix is charging a flat 1.25 percent management fee not linked to inflation. In addition, carry is charged against yield, as opposed to rate of return, with a hurdle rate of 7.5 percent. Equitix also capped carry at 20 percent, so even though PFI projects, toward the end of their lifecycles, tend to produce very high yields, carried interest stops once the yield gets to 20 percent.”