• Final close of second core infrastructure fund on €669 million
• Including segregated account1 have raised €820 million, exceeding initial target
• Fund targeting 6-10 direct investments in mid-market UK and European core infrastructure
• 75% of capital already committed to 6 investments with a 7th in exclusivity and a strong pipeline of further opportunities
• ESG philosophy integrated into investment and asset management processes helping to drive positive change
Aberdeen Standard Investments (ASI) today announces the final close of its second core infrastructure fund, SL Capital Infrastructure Fund II. The core infrastructure team have secured €669 million of commitments for the fund together with €150 million1 for a segregated account. The combined fundraise of approximately €820 million exceeded the initial €600-800 million target and comprised commitments from a diverse cross section of financial institutions including corporate and local authority pension funds, insurance companies, fund of funds and family office investors from the UK, Continental Europe, North America and Asia.
The team, led by Dominic Helmsley, targets direct investment in mid-market core infrastructure transactions in the UK and Continental Europe. Building on the strong performance of Fund I, the fund invests across the utilities, transportation and energy sectors with a particular focus on assets operating within established regulatory frameworks or benefitting from contractual cash flows. The fund has an attractive structure that offers long-term infrastructure returns, working in close alignment with investors.
Dominic Helmsley, Head of Economic infrastructure said: “We are delighted with the support we received for the SL Capital Infrastructure Fund II from both existing and new investors. Many have been attracted by the experience of the team, our focus on mid-market European core infrastructure as well as the strong and consistent performance of the portfolios especially during the challenging environment we have seen over the past year.”
“Our strategy and approach has attracted clients who are looking for a differentiated angle to core infrastructure investing. Building on the strong performance of Fund I, we have confidence in the quality and characteristics of the Fund II investments made to date and are pleased with their initial positive performance. Our pipeline of opportunities is strong across our core sectors of transport, regulated utilities and energy infrastructure and we expect to complete the portfolio during the next 6-9 months.”
The fund has already committed 75% of its capital to six investments; Riihimaen Kaokolampo Oy and LOIMUA, district heating businesses in Finland fuelled predominately by a waste to energy “EfW” plant and biomass respectively; Unitank, a portfolio of six liquid bulk storage terminals in Germany and Belgium benefitting from long term contracts; ASI Polish Solar, a 350 MW portfolio of ground mounted solar PV in Poland benefitting from the 15 years CfD regime; Rock Rail West Coast, a core fleet of rolling stock operating on the West Coast Partnership UK rail franchise bring improved customer experience and material reductions in emissions; and Airband, a provider of rural connectivity services (both Fixed Wireless Access (FWA) and Fibre To The Premises (FTTP) in the West of England,
1 Evergreen segregated account - €150m represents expected size after 3 year period
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