Infracapital second fund reaches £770m

An SEC filing shows the London-based fund manager closing in on its final target of £900m.

Infracapital, the London-based infrastructure investment arm of M&G Investment Management, has raised just over $1.3 billion (£770 million) for its second fund according to a filing with the US Securities and Exchange Commission (SEC).

Infracapital Partners II, which is aiming to achieve a final close on £900 million, posted an interim closing on £530 million in September last year. At the time, the firm said it had received commitments from new and existing investors in the UK, mainland Europe, North America and Asia.

It is not currently known whether the latest SEC filing represents an official closing. The firm itself was unavailable for comment.

Infracapital Partners II is the successor to the firm’s first fund, Infracapital Partners, which closed on just over £900 million in November 2008 and was invested in the likes of port operator Associated British Ports, gas and electricity meter business Meter Fit, and Kelda, the owner of Yorkshire Water.

At the time of the interim closing, the second fund had made only one investment in the £1.24 billion acquisition of Veolia UK (renamed Affinity Water), the UK’s second-largest regulated water-only utility, which Infracapital bought with Morgan Stanley Infrastructure in June 2012.

In November, it followed this with the acquisition of Falbygdens Energi, a Swedish electricity provider, from power and gas group Goteborg Energi. The deal was the first completed by the fund manager in Sweden.

Infracapital focuses on control stakes in core, operational infrastructure assets in the mid-market in the UK and continental Europe. It is headed by Martin Lennon, who previously led M&G’s project and infrastructure finance business before founding Infracapital with director Ed Clarke.