First Sentier over two-thirds to target as €2.2bn raised for EDIF III

The group’s third European fund was launched in September 2019, targeting €3.5bn over a series of fundraisings.

First Sentier Investments has raised more than two-thirds of its initial target after it secured €2.2 billion for its European Diversified Infrastructure Fund III.

The fundraising represents the close of Series 1 of EDIF III, with the fund targeting an overall €3.5 billion, which will likely take place over three series. First Sentier traditionally raises its European funds through this format, arguing that the format provides for disciplined deployment strategy.

The fund has made one investment to date, agreeing a £995 million ($1.3 billion; €1.1 billion) deal with UK utility SSE to acquire a 50 percent stake in Multifuel Energy, which includes two operational 75MW energy-from-waste plants and a 45MW site under development. The deal is set to close next year.

First Sentier said in a statement that about 80 percent of the Series 1 investors are European, with the remainder originating from Australia, Asia and North America. The series achieved a 60 percent re-up rate in terms of the number of investors that committed to it.

EDIF III, which was launched last year, targets gross returns of about 10 percent and a cash yield of 5 percent. It targets mid-market investments in the energy, utility and transport sectors in Europe.

The close of Series 1 is First Sentier’s first since changing its name from First State Investments in the wake of its takeover by Mitsubishi UFJ Trust & Banking Corporation from the Commonwealth Bank of Australia.