SL Capital Partners has announced the final close of its inaugural infrastructure fund, SL Capital Infrastructure Fund I.

The fund secured £516m of commitments (US$645 million), ahead of its initial £400 million (US$500 million) target, from a diverse cross section of financial institutions, local authority pension funds and family office investors from North America, the UK, and Europe.

Standard Life was a significant supporter, backing infrastructure investment across the UK and Europe.

The team, led by Dominic Helmsley, targets direct investment in mid-market core infrastructure transactions in the UK and north-west Europe. The fund has an attractive structure that offers long-term infrastructure returns, working in close alignment with investors. 

The fund has already committed 37% of its capital to four investments as the majority shareholder; Auris Kaasunjakelu, a gas distribution business with 570km of pipelines in Helsinki and 11 other cities in Finland; Nordic Power AS, a portfolio of 13 small scale hydro-electric plants in Norway; and two UK rail investments in partnership with Rock Rail - a new fleet of Siemens trains on the Great Northern franchise out of Moorgate station in London and new Stadler intercity trains for the Liverpool Street based East Anglia franchise. 

Roger Pim, Deputy Head of SL Capital Partners commented; 

“We are pleased with the support we received for what is one of the largest first-time funds raised for European mid-market infrastructure investment in the past 5 years. Our investors have placed significant reliance on the quality and experience of the team, the positive alignment we offer and the strength of the SL Capital platform within Standard Life Investments.”

Dominic Helmsley, Head of infrastructure Equity noted;

“Our strategy and approach has attracted clients who are looking for a differentiated angle to core infrastructure investing. We have confidence in the quality and characteristics of the four 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 deploy significant capital during 2017.”