Fundraising

Henderson closes infrastructure fund

The oversubscribed fund closed on £330m with commitments from US, UK and European pension funds, insurance companies and family offices.

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Henderson Private Capital, the private equity arm of Henderson Global Investors, has held a final close of its infrastructure fund Henderson PFI Secondary Fund LP.

Henderson PFI Secondary Fund closed on £330 million (€480 million; $577 million), exceeding its target size of £200 million. The fund held a first closing of the fund at £136 million in December 2004.

During the period of fundraising, interest in infrastructure in general has risen, and our fund is in lower-risk assets and that seems to have struck a chord with investors.

Paul Woodbury, partner, Henderson Private Capital Infrastructure

According to Paul Woodbury, partner at Henderson Private Capital Infrastructure, third and final close commitments had to be scaled back and investors turned away.

The fund will pursue a strategy of investing in the secondary market for operational Private Finance Initiative (PFI) and Public Private Partnership (PPP) projects in the UK and Western Europe.

Woodbury said that the fund had already completed a number of investments in several sectors, but declined to give further details. He added that the fund would likely take three years to invest and that further deals are expected before the end of 2005.

The oversubscribed fund attracted commitments from US, UK and continental European LPs, including pension funds, insurance companies and family offices. Investors included: AP3, The State Pension Fund (VER), Merseyside Pension Fund, Storebrand, Greater Manchester Pension Fund, and the University Superannuation Scheme (USS).

“During the period of fundraising, interest in infrastructure in general has risen, and our fund is in lower-risk assets and that seems to have struck a chord with investors,” said Woodbury in an interview with PEO.

In June, 3i made a £150 million commitment to UK-based infrastructure fund I2, matching £150 million commitments from Barclays Private Equity and SG Corporate & Investment Banking. With total capital of £450 million, I2 is currently the largest fund operating in the secondary PFI market, according to 3i.