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Hermes infrastructure fund reaches £700m with cash injection from Santander

10 Jul 2014

motorway-junction-1055982-mPrivate equity firm Hermes has hit the £700m mark for its GPE Infrastructure fund thanks to £210m of new commitments from LPs including Santander UK’s Common Investment Fund.

The vehicle and its related accounts have also attracted capital from UK local government pension schemes, the firm said.

Hermes Infrastructure currently manages a portfolio of 11 assets valued at around £1.2bn. These are pre-dominantly direct investments in UK Core and Value Added strategies.

Santander director of pensions Antony Barker said, “Partnering with Hermes Infrastructure is our first dedicated infrastructure commitment for the Santander CIF, with Hermes selected because its strategies offered us the opportunity to tailor a direct and indirect portfolio that satisfied our risk and return requirements.”

Hermes Infrastructure’s total AUM now stands at £2.7bn, £2bn of which is a direct investment managed account programme for the BT Pension Scheme.

The firm’s Infrastructure head Peter Hofbauer said, “We remain focused and committed to delivering enhanced risk-adjusted returns for investors through our range of investment strategies and diversified infrastructure portfolio.

“Paying the right price, aiming to preserve capital and integrating ESG considerations into our investments are essential to our approach and optimising returns.”

Hermes tapped its Infrastructure Fund to buy a 50 per cent stake in the 72MW Braes of Doune wind farm in Stirlingshire, Scotland, for £59m in cash in May 2013.

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