Swedish asset manager Infranode has completed its first investment from its discretionary infrastructure fund, which reached a first close on SKr1.45 billion ($179 million; €157 million) in September 2014.
The debut deal sees the fund buy into Swedish biomass district heating company Vasa Varme through a preferred equity issue. Infranode has also signed an agreement with Vasa Varme, which is majority owned by HgCapital's second renewables fund, to finance and expand its Swedish district heating activities over the next years. The company provides services to homes, industries and municipalities.
Infranode would not comment on the size of the deal.
Infranode's 25-year discretionary fund is gearing up for a second round of fundraising in April, as it seeks a final close of SKr4 billion. The fund caters mostly to Nordic investors seeking low-risk infrastructure investments and does not charge carried interest. It targets investments mostly in the Nordic countries although it can also invest elsewhere in Europe.
In addition to its discretionary fund, Infranode has also been advising Swedish pension fund AMF, which in December spent £237 million ($341 million; €299 million) buying a 49 percent stake in the Ormonde offshore wind farm, in north-west England. It also advised the pension on its £300 million commitment to the Green Investment Bank's pioneering offshore wind fund.