First State raises €700m for second flagship fund

The firm has already invested more than a third of the money collected for EDIF II, which has a €2bn target.

First State Investments has reached its first fundraising milestone for the European Diversified Infrastructure Fund II, garnering €700 million from a range of international institutions.

Like EDIF I, the vehicle is being raised in successive stages, which First State refers to as ‘series’. The fund manager has now closed the first series, which had a €700 million target. That places First State at more than a third towards EDIF II’s €2 billion overall target. The vehicle has a €2.5 billion hard-cap, as previously reported by Infrastructure Investor.

Philippe Taillardat, a partner at First State, said the vehicle had seen a re-up rate of 65 percent for the current series. “We are excited to enter the next series of EDIF II, which we anticipate will run from September 2017. Our pipeline looks promising,” he added.

The firm said the fund’s total capital would be raised “over a limited number of fundraising series”. Last year, First State told Infrastructure Investor it was planning to hold three fundraising rounds for EDIF II, as opposed to five for its debut European fund. Each series would have a target of €700 million and a maximum size of €900 million, it noted then.

Taillardat said over a third of the capital raised for EDIF II has already been deployed through investing in Coriance, a district heating company the firm acquired from KKR, and Ancora Wind, a 171MW wind portfolio bought by its portfolio company Finerge.

Launched in 2007 as an open-ended vehicle, EDIF I then moved to a hybrid structure in 2009. The vehicle’s last round of fundraising, closed in January 2015 on €721 million, allowed it to reach its hard-cap of €2 billion.