Infracapital raises €1.5bn for greenfield infrastructure fund

M&G’s infrastructure equity investment subsidiary has completed a €1.5bn raise for its second greenfield infrastructure fund. Infracapital announced that the total funds raised for the Infracapital Greenfield Partners II (IGP II) exceeded the European fund’s original €1.35bn cap.

Infracapital’s first greenfield infrastructure fund raised £1.25bn (€1.45bn) in 2017. The manager indicated that there was significant interest in IGP II from existing backers representing three-quarters of total funding raised.

The fund also drew notable capital commitments from new investors from across the United Kingdom, continental Europe, Asia, North America and the Middle East, the manager said. Infracapital indicated that IGP II has already disbursed over 50% of capital commitments across five portfolio companies.

Martin Lennon, co-founder and head of Infracapital, indicated in a statement that the latest fundraise represents the sixth flagship fund during Infracapital’s 20 years of infrastructure investment.
”The need for sustainable, essential infrastructure across Europe has never been greater, particularly in a post-pandemic world, where private capital will play a critical role in catalysing economies and delivering on net zero commitments.”

Andy Matthews, the head of greenfield, said: “We’re excited to be funding growing and innovative businesses which have the potential to be leading firms in the European energy transition across utility, transport and industrial sectors, and are enabling digital connectivity.”

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