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Exclusive: Infranode eyes fall close for discretionary fund

The Swedish asset manager hopes to raise a further Skr2.5 billion from Nordic investors, with a focus on Finland and Sweden.  

Swedish asset manager Infranode is eyeing a second and potentially final close in October for its discretionary infrastructure fund, targeting SKr4 billion ($482 million; €431 million).

Infranode has already raised SKr1.45 billion for the fund through a September 2014 first close, but was waiting to clinch its debut deal – the acquisition of a stake in biomass district heating company Vasa Varme – before kick-starting a second round of fundraising, Infrastructure Investor understands.

The manager invested in Vasa Varme, majority owned by HgCapital's second renewables fund, through a preferred equity issue. It also signed an agreement with the company to finance and expand its Swedish district heating activities over the next few years. Vasa Varme provides services to homes, industries and municipalities.

With Vasa Varme out of the way, the manager plans to target Nordic investors, focusing mainly on Finland and Sweden, with Norway also potentially on the list. The 25-year vehicle caters mostly to investors seeking low-risk infrastructure investments and does not charge carried interest. It targets deals mostly in the Nordic countries, although it can also invest elsewhere in Europe.

In addition to its discretionary fund, Infranode has also been advising Swedish pension fund AMF, which in December spent £237 million ($341 million; €299 million) buying a 49 percent stake in the Ormonde offshore wind farm, in north-west England. It also advised the pension on its £300 million commitment to the Green Investment Bank's pioneering offshore wind fund.