3i Group has announced the first close of the 3i European Operational Projects Fund, with €155 million (US$169 million) raised from a number of European investors, including a commitment of €40m from 3i.

The fund will invest in operational PPP projects across Europe, with a focus on France, the Benelux, Germany, Italy and Iberia and sub-sectors such as social infrastructure and transportation. It aims to provide long-term yield to institutional investors. The fund will acquire a seed portfolio of 11 operational projects, generating immediate yield for investors.

The fund is managed by 3i’s infrastructure team, one of the largest and most experienced in Europe. Since 1998, 3i’s infrastructure team has invested a total of c. £2 billion in 260 PPP projects across Europe and has built many longstanding relationships with major construction companies, operators and utilities across the continent. In total, 3i now manages or advises c£3.5bn of infrastructure assets across six investment vehicles.

Phil White, Managing Partner and Head of Infrastructure, commented:

“This new fund extends our infrastructure activities and builds on our prior success in PPP and concession projects. We believe the European operational PPP market presents a compelling investment opportunity for institutional investors seeking long-term yield. We are very pleased with the interest received so far from both new and existing 3i investors.”