Israel Infrastructure Partners eyes July close for $350m debut fund

Firm has so far raised around $250m from European LPs as it seeks to generate returns of about 12%.

Israel Infrastructure Partners is planning to hold a $350 million close on its debut fund in July, Shalom Mizrahi, managing partner of the firm, told Infrastructure Investor.

IIP I was launched in March with a $350 million target, and Mizrahi said the group had already raised around $250 million. Capital has largely been secured from European family offices and high-net-worth individuals.

The fund is targeting around 12 investments across Israel’s communications, defence, energy, environmental services, power and renewables, transportation, utilities, waste management and water sectors. It is looking to generate a return of around 12 percent.

“The scale of the investments and the demand is big and growing,” said Mizrahi. “There’s a growing need to replace the existing infrastructure in roads, railways, communications networks and airports.”

The vehicle is designed specifically to meet the needs of foreign investors, who Mizrahi says have expressed an interest in accessing the Israeli market.

“Israel requires an on-the-ground team to have access to dealflow and manage the investments afterwards,” he said. “We’ve seen a lot of companies coming in from Asia recently, and they do one investment and leave.

“For us, what has been appealing to LPs is we have a presence in Israel. Some of our competitors in infrastructure funds in Israel raise mostly from Israeli institutions. We are the only fund targeting infrastructure in Israel [that is] raising capital from foreign investors.”

IIP has a senior team of eight people, with Mizrahi joined by three additional partners with backgrounds in private equity and family offices.