JLIF fundraising shy of £155m target

The listed fund has raised just about £131m via a new share offer, increasing the fund's size to £428m. The proceeds will be used to buy nine operational PPP projects from John Laing, increase a stake in an existing project, and reduce the fund’s debt.

The John Laing Infrastructure Fund (JLIF), which raised £270 million (€311 million; $419 million) in a listing on the London Stock Exchange towards the end of last year, has announced that it managed to raise £130.7 million via a new share issue.

The amount raised falls just shy of the £155 million originally targeted by JLIF and will be used to buy a portfolio of nine operational public-private partnership (PPP) assets from developer John Laing, increase JLIF's stake in a hospital project in Canada, and repay the debt incurred in the recent purchase of 50 percent of Forth Volley Royal Hospital, the fund's first third-party acquisition.

With the new fundraising, JLIF increases in size by just under 50 percent, growing to £428 million. That will make the fund eligible for the FTSE UK 250 Index – an index of the 250 largest listed companies in the UK – at the FTSE's quarterly review meeting in early December, JLIF said in a statement.

In an interview featured on the November issue of Infrastructure Investor magazine, David Marshall, one of the two co-heads of the fund, expressed his satisfaction at the fund's imminent inclusion in the FTSE 250:

“We launched at £270 million and hopefully after this capital raise we’ll be at £450 million and at that point, we will be eligible for the FTSE 250 – we’re actually on the re- serve list and we might go in in December,” Marshall says cheerfully, before adding: “I think to go from launch to FTSE 250 in a year is quite a spectacular feat.”

JLIF has a long-term internal rate of return target of 7 to 8 percent.