Infranode reaches €517m first close for fund II – exclusive

The Swedish firm is more than halfway to its €1bn target and could seek further commitments from investors outside the Nordics.

Swedish fund manager Infranode has secured a €517 million first close on its second fund, Infrastructure Investor has learnt.

The close came after a €150 million commitment disclosed this week by Keva, the largest pension scheme in Finland. Keva’s investment follows a commitment worth about €67 million last month from Krykans Pensionskassa, the Church of Sweden’s pension fund.

The close ensures Infranode has now secured more than half of its €1 billion target and more than the amount raised for the entirety of its first fund. Infranode I was closed in December 2017 on SKr4.45 billion ($504 million; €426.5 million), although Infranode II is being raised in euros.

It is understood that Infranode now plans to market the 25-year fund beyond its Nordic investor base in Europe and Asia but will remain selective in terms of the countries it targets for raising capital. A final close is planned for the end of this year, although this could be formally concluded at the start of 2021.

Infranode declined to comment on the fundraising.

The fund continues its predecessor’s strategy of only investing in Europe’s Nordic region and has to date secured two deals, investing alongside Keva and Vanta Energy to buy Fortum’s Finnish district heating business in July, while in May it partnered with municipality-owned Danish Port Esbjerg to invest in new port infrastructure facilities for the wind turbine industry.

Last month, Infranode announced it had started using artificial technology developed by Silo AI to complement its existing deal origination capabilities.

Infranode II was launched towards the end of last year and Infranode secured anchor commitments from Swedish investors Folksam, KPA and the IMAS Foundation.