M&G’s infrastructure equity investment arm has raised €1.5bn for its second greenfield infrastructure fund.

Infracapital said the amount raised for the Infracapital Greenfield Partners II (IGP II) exceeded the European fund’s original €1.35bn target.

Infracapital’s first greenfield infrastructure fund raised £1.25bn (€1.45bn) in 2017.

The manager said there was a high level of interest in IGP II from existing investors representing three-quarters of total commitments raised.

The fund also received significant capital from new investors from across the UK, continental Europe, Asia, North America and the Middle East, the manager said.

Infracapital said IGP II has already deployed more than 50% of capital commitments across five portfolio companies.

Martin Lennon, co-founder and head of Infracapital, said the latest fundraise represents the sixth flagship fund during Infracapital’s 20 years of infrastructure investment.

”The need for sustainable, essential infrastructure across Europe has never been greater, particularly in a post-pandemic world, where private capital will play a critical role in catalysing economies and delivering on net zero commitments.”

Andy Matthews, the head of greenfield, said: “We’re excited to be funding growing and innovative businesses which have the potential to be leading firms in the European energy transition across utility, transport and industrial sectors, and are enabling digital connectivity.”

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