Sweden’s AP4, Denmark’s Industriens Pension and Norway’s KLP - along with the IKEA-linked IMAS Foundation - are backing a long-term vehicle to invest in low-risk European infrastructure, which has raised €1bn.
The institutions have become founder members of an investment alliance partnership with Arjun Infrastructure Partners, a club deal to invest across different sectors in Western Europe, according to the Nordic investors.
The vehicle - called Infrastructure Alliance Europe - has raised commitments of €1bn, including capital from other unnamed investors.
Andreas Jensen, senior portfolio manager, alternative investments at Swedish state pension buffer fund AP4, said: “AP4 takes a very long-term view in building its comprehensive core infrastructure portfolio.
“We are pleased to team up with like-minded institutions that share our investment philosophy meaning that returns and sustainability go hand in hand,” he said.
At Copenhagen-based Industriens Pension, head of infrastructure Michael Dalsgaard said: “Industriens Pension has been an active investor in infrastructure for 15 years and are pleased to partner with like-minded institutions and Arjun to form this platform for additional core infrastructure investments.”
The new vehicle fit well into Industriens Pension’s infrastructure investment strategy, he said, where it aimed to create attractive risk-adjusted returns based on a sustainable and long-term approach.
Meanwhile, Harald Koch-Hagen, director of strategic asset allocation at KLP, said the investor link-up would help the Norwegian municipal pension provider reach its goal of investing in long-term infrastructure assets with a strong sustainability profile.
“Along with a strong group of experienced investors and a forward-thinking manager, this is an efficient way to further improve the risk-adjusted return for KLP’s members and owners while investing in a more sustainable future for Europe,” he said.
Infrastructure investment consultancy Etore Advisory assisted the investor group in the development of the initiative and Allen & Overy provided legal advice, according to the announcement.
Infrastructure consultancy Etore Advisory assisted the investor group in the development of the initiative and Allen & Overy provided legal advice.
Eugene Zhuchenko, director and founder of Etore Advisory, told IPE Real Assets that the four institutions did not want to disclose their individual commitments to the investment vehicle.
“The vehicle has had its final closing and will not be open to additional commitments,” he said.
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