INPP in oversubscribed £200m fundraise

The London-listed fund manager has raised £20m more than it was expecting from its most recent placement. The funds will be used primarily to fund three new investments.

International Public Partnerships (INPP), the London-listed infrastructure fund manager, announced today that it has raised more money than it was expecting from a recent placement.

INPP said at the close of May that it was looking to raise £180 million (€248 million; $313 million) to help fund approximately three investments worth some £170 million that it was in advanced negotiations to purchase. It added it planned to use the rest of the proceeds to pay down debt.

“We’re delighted to have exceeded our fundraising target, attracting £200 million of additional capital from a range of UK and international investors,” Keith Dorrian, INPP’s chairman, commented in a statement.

In its mid-April annual results presentation, the firm said it had notched a record investment year in 2011, with £122 million of new capital invested in 22 deals – more than twice the amount the firm had invested in the previous year.

The update with respect to £170 million of new investment in the pipeline adds weight to the comments of INPP director Giles Frost after the results announcement, when he told Infrastructure Investor that 2012 could see “at least as much [new investment] as last year…maybe much more”.

The INPP fundraising is part of trend of listed UK infrastructure fund managers seeking new capital to fuel busy deal pipelines. In March this year, HICL raised £250 million rather than the planned £180 million in response to strong demand from investors. In December last year, Gravis Capital Partners more than doubled its fund size with a larger-than-expected fresh injection of £67 million.