InfraRed Capital Partners is planning a multi-billion fundraising process for two new unlisted infrastructure funds.
The London-headquartered manager is premarketing to institutional investors two new funds that will seek to raise over EUR 3bn for investment in Europe and North America, two sources familiar with the process said.
InfraRed will look to raise EUR 1.5bn for a new unlisted infrastructure fund that will invest across Europe and has also set an initial target of USD 2bn (EUR 1.7bn) for a US-focused renewables fund, the sources said.
The European fund will invest alongside the manager’s flagship listed funds HICL, whose portfolio includes on PPPs and regulated infrastructure, and renewables-focused TRIG. The fund – InfraRed European Infrastructure Income 4 (1) LP – was registered on the UK company register Companies House last month.
The fund is expected to invest with a buy and hold strategy across the transportation, regulated utilities, social infrastructure and renewable energy sectors, the sources added.
In addition to investing in assets jointly with HICL and TRIG, the fund, which has a target gross IRR of 8%, will also be able to invest independently of the two listed funds in instances where they have reached their concentration limits for particular countries or sectors, the sources said.