German fund manager Golding Capital Partners is planning to launch two further infrastructure vehicles this year after closing its latest infrastructure fund of funds on €710 million.
The firm this week closed its Golding Infrastructure 2018 vehicle, securing commitments largely from its traditional German-speaking investor base of pension funds, insurance companies and banks, although it also expanded fundraising from Spanish investors too.
The fundraising fell slightly short of its €750 million target, although co-head of infrastructure Fabian Pötter attributed this to a number of investors instead wanting access to Golding’s co-investment pool, which raised about €330 million.
“We see a lot of co-investments today, as GPs know we are swift decision makers. We give them initial feedback within a couple of days on our level of interest. After that we can process a deal very quickly,” Pötter explained.
Golding Infrastructure 2018 has made eight fund commitments to date, he added, committing to InstarAGF Essential Infrastructure Fund II, Asterion Industrial Infrastructure Fund, Infracapital Greenfield Partners II, InfraVia European Fund IV, Basalt Infrastructure Partners III, EQT Infrastructure Fund IV and North Haven Infrastructure Partners III. Golding targets a net return of between 7 and 8 percent.
Golding now plans to launch a new co-investment fund, designed to work with the GPs it currently has a relationship with, as well as work with a smaller pool of new managers.
“We are in the process of launching our second co-investment fund with a target size of about €400 million which will be in the market imminently, Pötter said. “That fund will look to make about 12 investments and we have already received soft commitments of about €150 million.”
The firm will also launch another FoF vehicle, as a precursor to the next instalment of the Golding Infrastructure series. It is designed to meet the demand of investors who were unable to invest in Golding Infrastructure 2018 before final close.
“We are also planning the launch of Golding Infrastructure Plus 2020,” Pötter said. “We expect this vehicle to commit to some target funds already in Golding Infrastructure 2018 and to bridge the gap until we launch our successor flagship Infrastructure Fund next year.”
Pötter added that he has had discussions with GPs about how the asset class will fare in the wake of the coronavirus outbreak and is confident infrastructure can largely withstand the effects. He added that about €100 million of the Golding Infrastructure 2018 commitments was invested during March.
“There are some obvious sectors to contend with, like midstream and transport, but in many other sectors such as PPPs and communications, people are happy to continue pursuing deals,” he said. “We do not expect any substantial long-term impact on infrastructure.”