EQT Infrastructure II has successfully completed its fundraising at the hard cap of EUR 1.925 billion. Interest from both existing and new investors was strong and the fundraising was completed after 11 months with a first close reached on June 29, 2012, securing commitments of approximately 75% of the targeted fund size. Demand for the fund was significantly in excess of the hard cap of EUR 1.925 billion.
“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”, says Lennart Blecher, Partner and Infrastructure Business Line Head at EQT Partners, investment advisor to EQT Infrastructure II.
EQT Infrastructure II will be targeting existing infrastructure companies located primarily in Europe and North America. Focus is on acquiring medium-sized infrastructure companies with a significant opportunity for value creation through accelerating growth and implementing operational improvements. Potential investment targets are basic infrastructure, concession-based infrastructure and infrastructure-related services. The equity investment target will typically be between EUR 50 million and EUR 250 million.
EQT Infrastructure II announced the acquisition of three infrastructure companies before the end of 2012: the Norwegian offshore high capacity communication network owner and operator Tampnet in November and the Nasdaq-listed Westway Group in the US where a public bid was launched on December 31. Also in December, the joint ownership of E.ON Energy from Waste with E.ON in Germany was publicized.
“The joint ownership of E.ON Energy from Waste is a great example of how EQT is differentiated in its approach. EQT Infrastructure II is to acquire 51% and will have operational responsibility while E.ON remains as joint owner. E.ON partnered with EQT thanks to their belief in EQT’s industrial model and also the access provided to EQT’s Industrial Advisors who have vast experience and proven ability to develop businesses into even better and stronger companies”, continues Lennart Blecher.
EQT Infrastructure II is the first EQT fund to be managed on-shore with the EQT manager based in the Netherlands. The strong interest in EQT Infrastructure II is clear evidence that the policy of managing funds on-shore has been well received by the investor community.
Sovereign wealth funds and pension funds account for approximately 60% of the commitments compared to approximately 30% in the preceding fund. EQT Infrastructure II is backed by a number of well-regarded international institutional investors including the Alaska Permanent Fund, Bank of Oklahoma on behalf of its clients, Danica, DB Private Equity/Deutsche Bank, Folksam, Ilmarinen, KEVA, Lancashire County Pension Fund, New Mexico Educational Retirement Board, NTUC Income, Pantheon, Quartilium funds of funds, Quentin Ayers, SEB Gamla Trygg Liv, SEB Pension, Skandia, Varma and VER.
EQT was able to broaden the geographic investor base in EQT Infrastructure II compared to the preceding fund where the investor base was predominantly Nordic and European. EQT Infrastructure II has a diversified investor base geographically with approximately 40% of investor commitments coming from the Nordic region and 20% from each of the rest of Europe, Asia Pacific and the Middle East, and North America, respectively.
Since launch in October 2008, the first EQT Infrastructure fund has made 10 investments in Europe and North America, and one exit, US-based natural gas-fired cogeneration business MCV.
“The development in the EQT Infrastructure portfolio companies has been tremendous and heavy investment has been made to expand and strengthen their operations. We still see a great need for private infrastructure investments in the market and believe there is a great demand for the growth-oriented governance and ownership model which is EQT’s hallmark”, concludes Lennart Blecher.
Lennart Blecher +41 79 679 4691 Partner and Infrastructure Business Line Head at EQT Partners, Investment Advisor to EQT Infrastructure II
EQT Press Department +46 8 506 55 334
EQT is the leading private equity group in Northern Europe with approximately EUR 20 billion in raised capital and multiple investment strategies. Together with an extensive network of independent Industrial Advisors, EQT implements its investment strategy by acquiring or financing good medium-sized to large companies in Northern and Eastern Europe, Asia and the United States, supporting their development into leading companies. Development is achieved by an industrial strategy with focus on growth. Since inception, EQT has invested more than EUR 11 billion in around 100 companies and exited close to 50. EQT-owned companies have more than 550,000 employees.
EQT Infrastructure II is the second fund within the infrastructure investment strategy. The first fund closed in 2008 at approximately EUR 1.2 billion. EQT Infrastructure II seeks to invest in medium-sized infrastructure companies with a significant opportunity for value creation through accelerating growth and implementing operational improvements. Potential investment targets are basic infrastructure, concession-based infrastructure and infrastructure-related services.
EQT Partners, acting as Investment Advisor to the general partners and managers of each EQT fund, has around 120 investment professionals with an extensive industrial and financial competence. EQT Partners and its affiliates have offices in Copenhagen, Frankfurt, Helsinki, Hong Kong, Oslo, London, Munich, New York, Shanghai, Singapore, Stockholm, Warsaw and Zurich.
More information can be found on www.eqt.se