InfraVia smashes target to close Fund V on €5bn hard-cap

Originally targeting €3bn, the fund attracted 50% of its capital from new LPs.

French manager InfraVia Capital Partners has sailed past its €3 billion target to close its fifth European fund on its €5 billion hard-cap.

The fundraise, which was 100 percent virtual, marks a significant increase from Fund IV, which raised €2 billion in 2018 – the exact difference between Fund V’s target and hard-cap.

Despite the jump, InfraVia partner Bruno Candès told Infrastructure Investor LPs were supportive of Fund V’s increased size.

“This is a business that has been going for the last 15 years. Some LPs have been with us since Fund I, some have been with us for over 10 years. We have a very transparent, trust-based relationship with our LPs,” Candès said.

“So, when we explained to LPs that Fund V’s size did not mean strategy drift, it just meant the ability to do more deals and deploy capital as assets grow or get consolidated inside platforms, they understood that,” he added.

Fund V secured over half of its capital from existing LPs – “representing a 100 percent re-up rate,” chief executive Vincent Levita said in a statement – with the remainder coming from new investors.

Just over half of the vehicle’s LPs came from Europe, with North America and the Middle East each accounting for some 20 percent of the investor base and Asia the remaining 9 percent.

“Fund V was the breakthrough with US LPs,” Candès told Infrastructure Investor, noting the seeds had been sown during Fund IV’s fundraise.

The fifth flagship – which is categorised as Article 8 under the EU’s Sustainable Finance Disclosure Regulation – will continue its predecessors’ strategy of investing in the European mid-market, building platforms focused on the energy transition, digital infrastructure, social infrastructure and mobility. While InfraVia does not disclose its funds’ returns, Infrastructure Investor understands its previous vehicles were targeting IRRs around the 12 percent mark.

Candès said some 30 percent of the fund is already committed across four deals. In a statement, InfraVia disclosed three of them: Grandir, a leading childcare and early education operator, and two digital infrastructure transactions, including a joint venture with Liberty Global to develop fibre-to-the-home in rural Germany and an investment in Fibre Networks Ireland.

Earlier this year, InfraVia raised €501 million for its debut growth equity strategy – InfraVia European Growth Fund – supported by a wide range of European institutional investors as well as family offices. The vehicle, which was originally targeting €300 million, marks a departure from the infrastructure sector, focusing on European B2B tech start-ups.

Following the close of its latest flagship, InfraVia has now raised a total of €10 billion from over 150 global LPs.