Standard Life investment company SL Capital Partners has closed its first mid-market infrastructure fund, raising £516 million ($649 million; €607 million), £116 million above its original target.
The fund, which is already 37 percent invested across four assets, was backed by financial institutions, local authority pension funds and family offices from the UK, Europe and North America. Standard Life was also a “significant supporter” of SL Capital Infrastructure Fund I, as the vehicle is known. The latter is targeting mid-market core infrastructure investments in the UK and north-west Europe, writing €50-€100 million cheques, and net returns of between 8 percent and 10 percent.
To date, SL Capital Infrastructure Fund I has purchased majority stakes in Auris Kaasunjakelu, a gas distribution business spanning 570km of pipelines across 11 Finnish cities; Nordic Power, a portfolio of 13 small-scale hydro-electric plants in Norway; and two UK rolling stock deals.
Looking ahead, head of infrastructure equity Dominic Helmsley told us he expects to deploy well over £100 million this year across the transport, regulated utilities and energy sectors and anticipates the fund will be between 70 percent and 80 percent invested by the end of the year.