Lloyds posts £150m first close for UK fund

The UK bank’s infrastructure funds team has reached a significant milestone on its way to raising a planned £250m for investment in UK greenfield projects. The bank closed a European fund earlier this year and is also in the market with a US-focused vehicle.

Lloyds Bank Wholesale Banking & Markets has announced a £150 million (€188 million; $241 million) first closing for a fund focused on UK greenfield infrastructure projects. The fund has a final target of £250 million.

Gershon Cohen

A statement from Lloyds said that Lloyds Bank UK Infrastructure Partners LP had raised “substantial” commitments from several institutional investors including UK corporate pension plans and European investors including the European Investment Bank.

The fund will invest in infrastructure concessions characterised by stable and partially inflation-linked revenues, expected to be exclusively in the UK. The fund will be managed by a team led by fund principals Gershon Cohen and Sameer Amin.

Towards the beginning of this year, Infrastructure Investor revealed that Lloyds had raised in excess of €200 million for the first and final closing of its European fund, Lloyds Bank European Infrastructure Partners LP (LBEIP). In its latest statement, Lloyds says LBEIP – which is managed by the same team as the UK fund – raised “several hundred million Euros” to invest in European greenfield projects.

In a connected piece of news, Lloyds said John Burnham, the former head of Citibank’s global infrastructure business, has been appointed chairman of the investment and advisory committees of both the UK and European funds.

The third strand of Lloyds’ infrastructure fund strategy is a US-focused vehicle, which is currently in the market. According to sources canvassed by Infrastructure Investor earlier this year, Lloyds had originally gone to market with the idea of raising a sole greenfield infrastructure fund targeting around €600 million. But, one of the sources said, it changed the proposition to a trio of funds “to suit investor demand”.

In the statement, Cohen said: “The closing of a second infrastructure fund this year demonstrates continued appetite for investment in this asset class. We now have approximately £750 million of investment in infrastructure funds, £500 million of which is invested in the UK, which demonstrates our own focus on supporting the UK economy.”

Lloyds is 41 percent-owned by the UK government.