French fund manager Meridiam is in pre-marketing ahead of the launch of its European and Africa infrastructure funds, Infrastructure Investor has learnt.
While targets for the funds are understood to still be finalised, it is believed Meridiam could seek more than €1.5 billion for the fourth instalment of its Meridiam Infrastructure Europe series, while it could target about €700 million for its second Africa infrastructure fund.
Meridiam declined to comment on the fundraising.
Meridiam’s last flagship European infrastructure fund – Meridiam Infrastructure Europe III – raised €1.3 billion in 2016 and has made investments across the energy, transport, social infrastructure and telecoms sectors in countries such as France, UK, Spain, Bulgaria and Czech Republic.
Meridiam Infrastructure Europe II closed in March 2012 and was generating a net IRR of 10.5 percent at the end of 2019, according to the Maine Public Employee Retirement System, the latest publicly available data on the fund. The pension did not display an IRR figure for Meridiam Infrastructure Europe III.
The new Africa vehicle follows Meridiam’s launch of the first Meridiam Infrastructure Africa Fund in 2015, which it initially closed on €207 million, ahead of a €500 million target. The fund was later re-opened and Meridiam raised a further €339 million from both development finance institutions and institutional investors in March 2019, although the new vehicle is expected to follow a more traditional fundraising route.
It is understood that the second vintage of the series already has seed assets to its name ahead of the launch. The first Africa fund has invested in projects including renewables, ports, airports and roads across countries such as Senegal, Kenya, Madagascar and Gabon.