Infracaptial second infra fund closes on $1.6b

With co-investment pledges, total investable funds for the leading European infrastructure fund will be over $2.1 billion.

Infracapital has held a final close on its second infrastructure fund, Infracapital Parnters II, with $1.6 billion (£1.0 billion, €1.28 billion) of commitments, exceeding its initial target thanks to strong backing from existing and new investors from across Europe, North America and Asia.

Co-investment pledges take the total investable funds to over £1.3 billion (€1.7 billion, $2.1 billion) which, similar to its predecessor Infracapital Partners, will be invested in core infrastructure assets across Europe, according to a statement.

The fundraising, handled by global placement agency Atlantic-Pacific Capital, attracted a mix of pension funds, asset management organizations and insurance companies, it said.

Since its entry in the infrastructure sector in 2002, Infracapital has invested in utilities, transport, communications, renewables and social infrastructure sub-sectors in Europe, according to the statement.

It is a division of M&G Limited, the European investment management arm of Prudential PLC.

As a long-term owner of assets, Infracapital aims to create value through both its origination and operational capabilities.

“We are pleased to have achieved the final close amount in excess of our target and I want to thank our investors for their support. We will continue to work tirelessly to deliver strong yields and attractive overall returns,” Martin Lennon, Co-Founder and Head of Infracapital, said.

“Investors appreciated Infracapital's differentiated business model that seeks to garner strong returns while significantly isolating downside risks, and the ability to generate current yield,” said Richard Awbery, Partner at Atlantic-Pacific.