iCON final close just short of €500m

The Deutsche Bank spinout has filed an SEC form showing that it raised almost $600m for its second fund, amounting to €461m based on the exchange rate at the time of the filing.

iCON Infrastructure (iCON), the London-based mid-market infrastructure fund manager which spun out of Deutsche Bank in 2011, has posted a final close on its second fund.

A Form D registration filed with the US’ Securities and Exchange Commission (SEC) shows that iCON collected almost $600 million which, taking into account the exchange rate at the time of the filing, translates to slightly more than €461 million. The fund was believed to have been targeting €500 million.

The fund is understood to include commitments from around 20 limited partners (LPs) from around the world. In addition, a co-investment facility is thought to provide iCON with the capacity to invest around double the amount raised through the fundraising.

The iCON team is led by Paul Malan, who joined Deutsche Bank from Macquarie in 2004 to set up its infrastructure business.

The team’s first fund acquired stakes in the likes of UK rolling stock company Porterbrook, UK utility Sutton and East Surrey Water – which was recently sold to Sumitomo Corporation in a £306.5 million (€360.7 million; $471.3 million) deal – and Spanish pipeline and storage firm CLH. That fund also had around €500 million to invest in the form of a traditional fund plus managed accounts.

Malan told Infrastructure Investor: “There is a lot of appetite for infrastructure among institutional investors across the globe.  The managers experiencing the greatest fundraising success are those with the strongest track records and a differentiated strategy. For us, it’s about the mid-market, a track record of successful proprietary deals, a strong focus on value and active management of portfolio companies.”

At the beginning of this week, iCON announced a consortium which it is leading had signed long-term contracts with UK utilities Thames Water and National Grid to provide heat and power from a new 19-megawatt environmentally friendly facility in Beckton, East London. The consortium also includes renewable power specialists EEA Holdings and 20C.