EQT’s new longer-hold infrastructure fund has fallen short of its €5bn fundraising goal, securing commitments of US$3.2bn (€2.87bn).
The fund manager said EQT Active Core Infrastructure’s total fee-generating commitments at close included co-investments of US$300m.
EQT launched the fund in March 2022 with a plan to raise €5bn. The vehicle is expected to be held for 15 to 25 years and to focus on core infrastructure companies at the lower end of the risk-return spectrum.
EQT said the fund is backed by a well-diversified global investor base consisting of blue-chip investors, including pension funds, insurance companies, sovereign wealth funds, family offices and private wealth platforms.
In March this year, IPE Real Assets reported that the Montana Board of Investments had approved a €100m commitment to the EQT core infrastructure fund.
Alex Greenbaum, partner and head of EQT Active Core Infrastructure, said the fund has “an exciting deal pipeline of attractive, thematic investment opportunities ahead of us, and are pleased to have already partnered with three businesses that share our vision to deliver long-term, sustainable growth”.
Greenbaum added: “We see significant potential in core infrastructure against the current macroeconomic outlook, with the possibility to acquire high quality assets while creating value using our proven active ownership approach, and I am excited to further scale the strategy in the years ahead.”
The fund’s investments to date include: Ocea Group, a French provider of smart water and heat sub-metering infrastructure; Radius Global Infrastructure, a global owner and operator of critical digital infrastructure sites; and Tion Renewables, a European renewable energy producer and operator with a diversified portfolio of utility-scale solar, wind and battery storage projects.
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