The firm, one of Brazil’s biggest infrastructure investors, already manages BRL2.5bn ($1.27bn) across three private equity funds – an existing infrastructure vehicle, an oil and gas fund, and a renewable energy focused fund.
It is now targeting BRL1bn ($505m) for its latest fund, down from the BRL1.3bn ($656m) raised for its existing infra vehicle, according to a report in Fox Business.
Speaking to the newswire, fund manager Marcos Matioli said he had seen increased demand from foreign investors in the past 12 months.
He added that the Brazilian government “was creating clear advantages” for infrastructure investments to take place.
Two of the firm’s three funds – InfraBrasil and Ambiental – invest across the green energy spectrum as well as the water and sewage sectors.
InfraBrasil has $600m assets under management and holds a loan from the Interamerican Development Bank.
Caixa Ambiental, meanwhile, has $21m to invest in projects in the renewable energy, water and sewage, and environmental services sectors.
Ambiental acquires and finances projects primarily on projects that have the capacity to generate carbon credits, combined with an attractive return to its investors.
Launched in 1999, Santander’s (Brazil) private equity team initially managed exclusively ABN Amro Bank’s proprietary investments and then went on to launch InfraBrasil in 2006 as the largest infrastructure fund ever raised in Brazil at that time. This team separated from Santander in 2011.
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