First state raises 2bn for european infrastructure fund

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
First state raises 2bn for european infrastructure fund

First State Investments, a global asset management business, has raised €2 billion (US$2.29 billion) for its core European Diversified Infrastructure Fund (EDIF).

The fund has attracted €721 million (US$825 million) in additional commitments during its fifth and final round of fundraising. A total of 49 institutional investors from Europe, Asia, Australia, the Middle East and North America have backed the fund. The majority of them are pension funds and insurance companies.

EDIF is a 15-year closed-ended fund and had a €1.5 billion target size. The fund's investment focus is on mature, income-generating infrastructure assets in the utilities, transportation and essential services sectors which can offer attractive risk-adjusted returns.

The fund's objective is to build a diversified portfolio throughout European OECD countries by targeting low risk, stable assets that are expected to generate attractive internal rates of return (IRR) of 10% to 15% per annum and stable and predictable cash yields of 5% to 7% per annum.

According to First State said, since 2009, it has deployed or reserved 70% of total commitments, €2 billion, in eight infrastructure companies. The firm has diversified across the water, gas, electricity, broadcasting towers and transportation sectors in the UK, Finland, Germany, Sweden, Denmark and Spain.

In late October we reported that EDIF acquired 100% of Erdgasversorgungsgesellschaft Thüringen-Sachsen mbH (EVG) from E.ON and VNG - Verbundnetz Gas Aktiengesellschaft (VNG) in Germany.
List of country news

Country news

  • February 06, 2015

    Macquarie's European Infrastructure Fund launches note offering

    Macquarie's European Infrastructure Fund, MEIF Renewable Energy UK, has issued a £190 million (US$289.5 million) of debt in senior secured Notes maturing in 2020. Read more
  • February 06, 2015

    Infrared makes 100m commitment to tidal lagoon project

    InfraRed has agreed to invest in the £1 billion (US$1.52 billion) Swansea Bay Tidal Lagoon, the world-leading tidal power station development. Read more
  • February 09, 2015

    Tetragon Financial Group Limited completes acquisition of Equitix

    Tetragon Financial Group Limited (TFG) has completed its acquisition of Equitix Holdings Limited from Cabot Square Capital LLP. Read more
  • February 09, 2015

    Hinchingbrooke Health Care NHS Trust launches PPP tender

    Hinchingbrooke Health Care NHS trust, in Cambridgeshire, UK, has launched a tender process to develop a Key Worker Accommodation facility through a PPP project. Read more
  • February 11, 2015

    Birmingham and Amey in dispute over roads PFI

    Birmingham City Council and Amey, a UK based infrastructure support service provider, are in dispute over the City road PFI contract. Read more

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.