Advisors & Partners (A&P) has made two investments worth €44m on behalf of its recently launched European transportation equipment fund.
The alternative assets specialist said its Selective European Transportation Equipment Fund (SETEF) has funded a fleet of car-carrying intermodal and sliding door freight wagons that operate along the “major railway corridors” throughout Europe.
Vincent Tournant, managing partner at Advisors & Partners, said: “These investments underscore A&P’s commitment to contributing and accelerating the modal shift away from road transportation to a greener and more economical option of using rail.
“We are pleased to witness increased interest in the sector among long-term institutional investors, such as insurance companies and pension funds. Both newly acquired fleets of rail wagons are on lease with high utilisation rates which offer the prospect of potential attractive returns to SETEF’s shareholders.”
Pascal Varin, transportation assets leasing specialist adviser at Advisors & Partners, said: “Our long-term, diversified investment approach is designed to enhance our operational capabilities across all sectors, be able to reposition the fleet where there is demand and provide our clients with the most efficient, flexible, and sustainable transportation solutions available.
“These initial investments will allow us to better serve our customers and support their unique logistical needs.”
In March, the European Investment Bank and the Banque des Territoires led an initial €100m fundraising by A&P for SETEF, the first fund in a series of private equity infrastructure transition finance funds dedicated to the long-term development, operation and financing of European transportation equipment assets.
SETEF has set a €160m fundraising target with a hard cap of €208m.
Part of the strategy will be to own freight railcars and river barges to be leased out, under operating leases, to logistics operators, private and state-owned railway companies, as well as industrial businesses throughout Europe and neighbouring countries, generating long-term and stable revenues.
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