Swedish pension and insurance group Folksam has committed SEK2.7bn (€248m) to Arjun Infrastructure Partners’s latest European fund.
Folksam has backed Arjun Infrastructure Alliance Europe 3, a fund targeting established, stable-operation infrastructure assets across Western Europe, including the energy, digital, transport and waste and recycling sectors.
The capital for the commitment is being drawn from across the Folksam group, including Folksam Liv, Folksam Sak, Folksam Tjänstepension, KPA Pension and the Consumer Co-operative Pension Foundation.
Infrastructure Alliance Europe 3’s investors also include Fourth Swedish National Pension Fund and IKEA-linked IMAS Foundation.
Arjun’s previous vehicle, the core and core-plus Infrastructure Alliance Europe 2 fund, secured €1.1bn in capital commitments at final close, alongside an additional €300m for co-investment.
Rebecka Elkert, head of alternative investments at Folksam, said: “Arjun is a new manager for the Folksam Group and has shown good results in its previous investments. This investment will give us access to established European infrastructure, which will strengthen our long-term returns. We are also broadening the portfolio outside the Nordic region, making it more resilient over time and contributing to investments that strengthen Europe’s long-term stability and development.
“In addition, we see good opportunities to build a long-term collaboration with Arjun. The fact that we have a seat on the fund’s advisory committee, together with investors such as the Fourth Swedish National Pension Fund and IMAS, is also positive and gives us influence on important issues.”
Surinder Toor, managing partner at Arjun Infrastructure Partners, said: “We are pleased to welcome Folksam as an investor and long-term partner. It shows that our strategy and our way of working are appreciated. We look forward to continuing to deliver good results together with our investors.”
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