Exclusive: Equitix more than halfway to target

The London-based core infrastructure manager has posted a first close on £278m for its latest fund, which has a £500m target.

Equitix, which makes core infrastructure investments in the UK, has announced a first close on £278 million (€393 million; $431 million) on its Equitix Fund IV. This means it has raised 55 percent of its £500 million target.

The capital has been raised from 12 UK and European pension funds including some re-ups from the firm’s three previous funds.

Equitix closed its first fund on £104 million in March 2010, its second on £333 million in May 2012, and its third on £505 million – reaching its hard cap and passing a £350 million target – in October 2013. The latter fund is now fully committed.

The firm also has a £100 million energy-saving investments fund, which it launched in August 2012 with the UK Green Investment Bank as a cornerstone investor, and an energy efficiency fund which invests in parallel with the energy-saving investments fund.

Equitix said in a statement its Fund IV will remain consistent with the prior funds, investing in long-term core infrastructure projects with most of the assets being availability-based and backed by the UK government or other regulated entities.

The firm has invested in sectors including education, healthcare, social housing, highways and street lighting, offshore transmission, waste and renewables.

In February this year, the firm completed the acquisition of the £352 million Gwynt y Môr offshore transmission project in Wales alongside Balfour Beatty. The previous month its joint venture with Carillion was selected as preferred bidder for the Midlands private finance batch of the UK government’s £750 million Priority School Building Programme.

“Equitix’s core focus is to raise funds and deploy them quickly, which we have successfully delivered in predecessor funds,” said Hugh Crossley, chief investment officer of Equitix.

He pointed out that Fund III’s £505 million was committed in just under two years and that the firm has identified a pipeline of projects for the latest fund to invest in.

Equitix is headed by chief executive officer, Geoff Jackson, who founded the firm in 2007 alongside Nick Parker, chief operating officer, and Hugh Crossley. All three previously worked together on the Barts & The London Hospitals project.

Equitix is being advised on its latest fundraising by law firm Ashurst and placement agent Evercore Private Funds Group.