Nordic buyout house EQT has closed its second infrastructure fund at its hard cap of €1.925bn, a fundraising that was oversubscribed after less than year on the road.
The Stockholm-based private equity firm said interest from both existing and new investors for EQT Infrastructure II was strong and the fundraising was completed after 11 months.
The fund reached a first close on June 29 last year, securing commitments of about 75 per cent of the total targeted fund size, according to a statement.
Sovereign wealth funds and pension funds accounted for about 60 per cent of the commitments compared to around 30 per cent in the preceding fund, the firm said.
The firm broadened its geographic investor base for EQT Infrastructure II compared to the preceding fund, where the investor base was predominantly Nordic and European.
EQTI II received 40 per cent commitments from the Nordic region and 20 per cent from each of the rest of Europe, Asia Pacific and the Middle East, and North America respectively.
Investors include the Alaska Permanent Fund, Bank of Oklahoma, Danica, Deutsche Bank’s DB Private Equity, Folksam, Ilmarinen, KEVA, Lancashire County Pension Fund, New Mexico Educational Retirement Board, NTUC Income, Pantheon, Groupama fund of funds Quartilium, Quentin Ayers, SEB Gamla Trygg Liv, SEB Pension, Skandia, Varma and VER.
The vehicle is also the first EQT fund to be managed on-shore with the EQT manager based in the Netherlands, which the firm said presents clear evidence that the policy of managing funds on-shore has been well received by the investor community.
“The confidence expressed by investors demonstrates the appreciation of EQT’s approach to value creation through industrial development, operational excellence and also growth in the infrastructure sector,” said EQT infrastructure business line head Lennart Blecher.
EQTI II targets mid-market infrastructure companies primarily in Europe and North America.
The vehicle invests in basic infrastructure, concession-based infrastructure and infrastructure-related services, with equity investments ranging between €50m and €250m.
The fund bought three infrastructure companies before the end of 2012, including Norwegian offshore communication network operator Tampnet in November and Nasdaq-listed Westway Group in the US, where a public bid was launched on December 31.
The joint ownership of E.ON Energy from Waste with E.ON in Germany was also announced in December, which will see EQT Infrastructure II acquire 51 per cent of the business and assume operational responsibility, while E.ON will remain as a joint owner.
Since launch in October 2008, the €1.2bn EQT Infrastructure I fund has made 10 investments in Europe and North America, and one exit, US-based natural gas-fired cogeneration business MCV.
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