iCON halfway through €500m second fundraise

The Deutsche Bank spin-out is targeting a final close for its second infrastructure fund by the end of this year. iCON recently hired veteran infrastructure banker Iain Macleod to beef up its ranks.

iCON Infrastructure, the independent fund manager which spun-out of Deutsche Bank last summer, is understood to be approaching the halfway mark on the fundraising for its second infrastructure fund, market sources told Infrastructure Investor. The fund is believed to be targeting €500 million.

According to the sources, iCON appears to be on track to reach a final close on the fund by the end of this year. A spokesperson from iCON declined to comment when asked about the fundraising.

The iCON team – led by Paul Malan, who joined Deutsche Bank from Macquarie in 2004 to set-up its infrastructure business – already manages a fully invested, €500 million infrastructure fund. The latter holds stakes in rolling stock company Porterbrook, UK utility Sutton & East Surrey Water and Spanish oil and storage company Compania Logistica de Hidrocarburos, to name a few.

At the moment, iCON's second fund counts one asset, West Virginia gas distribution company Mountaineer Gas, which serves some 220,000 residential and industrial end-users. Recently, iCON, together with Canadian pension PSP Investissements, participated in the early stages of the bidding for the UK assets of French group Veolia Environnement, but decided against submitting a final bid.

The independent fund manager has recently reinforced its team with the hiring of Iain Macleod. Macleod, a veteran banker with 20 years of corporate finance and infrastructure experience, spent the last 11 years at Deutsche Bank, where he was head of transportation and infrastructure for Europe, the Middle East and Asia and head of M&A for Asia.