Infracapital III edges towards target after raising £1.1bn

The firm’s third fund is targeting £1.5bn with a £1.8bn hard-cap.

UK-based Infracapital has raised £1.1 billion ($1.5 billion; €1.2 billion) for its Infracapital Partners III fund, according to documents filed with the US Securities and Exchange Commission.

The fund, launched late last year, has a £1.5 billion target with a believed hard-cap of £1.8 billion. It has garnered $69.6 million from US-based investors, the filing stated. At least £9.6 million was provided by insurer parent company Prudential.

The SEC filing detailed commitments to the fund in dollars, although the fund is being raised in sterling.

Infracapital Partners III has already raised more than its £1 billion predecessor, which closed in 2014, although that vehicle also secured an additional £300 million in co-investment commitments.

Infracapital Partners II achieved a 58 percent re-up rate, with the bulk of the fundraising coming from the UK and Europe, although significant capital also came from investors in Asia and North America. It was returning a net 20.6 percent as at the end of September 2017. Infracapital’s £908 million debut fund was realised last year, returning 2.1 times capital to investors and recording an 11.4 percent IRR.

The firm, which declined to comment on fundraising, is also in the midst of investing its £1.25 billion greenfield fund, which closed in November. It has made seven investments and is 50 percent committed. Last month it combined with Deutsche Asset Management to buy £700 million of rolling stock across railways in the UK.