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Infranode scoops further $213m from EIB, pensions

The $376m platform is targeting mid-market Nordic investments as it heads towards a final close later this year.

Swedish asset manager Infranode has secured an extra SKr1.9 billion ($213.4 million; €200.7 million) for its infrastructure investment platform from the European Investment Bank and two Swedish pension funds.

The second investment round brings Infranode’s collected capital to SKr3.35 billion ahead of its targeted SKr4 billion final close later this year. The fund was launched in 2014 with initial commitments of SKr1.45 billion. It targets investments in utilities, telecoms, transportation and social infrastructure assets.

The additional funds included SKr900 million from the EIB, with Folksam and KPA Pension providing the balance. Infranode’s initial cornerstone investment upon launch was garnered from IMAS Foundation, an asset manager affiliated to the IKEA Group.

Infranode, which targets mid-market assets in the Nordics, said its fund can help bridge the region’s infrastructure funding gap that is expected to reach €200 billion over the next 10 years. The vehicle made its first investment almost a year ago when it bought into Swedish biomass district heating company Vasa Varme through a preferred equity issue.

“There is a gap between the need for infrastructure development and the public sector’s ability to invest,” said Infranode co-founder and partner Christian Doglia. “We can bridge the gap between long-term investors seeking stable returns in infrastructure and the public sector’s time perspective and ability to invest.”

The EIB added that the fund can help make up for what it described as a “significant backlog” in the Nordic infrastructure market. The EIB’s investment is the first private infrastructure investment platform in the region to be guaranteed under the European Fund for Strategic Investments.

Infranode’s competition tightened earlier this month when Finnish private equity firm CapMan created a new infrastructure division, citing “high investor appetite for Nordic mid-cap infrastructure assets”. The company will be targeting similar investments to Infranode’s platform and is considering the launch of a fund after its first deals.