KKR infra spin-out targets first close

29 January 2019 - 12:00 am UTC

Asterion Industrial Partners is moving towards a first close of its inaugural infrastructure fund, just five months after it launched its maiden strategy.

Founded by former KKR head of energy and infrastructure Jesús Olmos, Asterion Industrial is understood to be targeting a first close in the region of EUR 450m for Asterion Industrial Infra Fund I in the coming weeks.

The Madrid-registered fund was launched in late-September with a target of EUR 850m and signed anchor commitments exceeding EUR 300m into the fund in mid-November as part of an interim close, sources said.

It is understood that the manager is hoping to reach the fund’s EUR 1bn hard cap by the summer, sources added.

The fundraise is being co-ordinated internally by Asterion Industrial, while King & Wood Mallesons is advising on legal matters. Both firms declined to comment.

The new 10-year fund will invest in operational mid-market infrastructure assets across the energy, utility, telecommunications and mobility sectors in Europe.

It is understood that it will seek to make individual equity investments of EUR 75m to EUR 200m per investment. It is envisaged that the fund will invest no-more than EUR 100m in a single asset, but will be able to fund larger equity investments through co-investment from LPs.

The fund targets a net IRR in the region of 10-13%.

Asterion Industrial Partners was founded in late 2018 by former KKR head of energy and Infrastructure Jesús Olmos. Prior to joining KKR, Olmos was a member of the executive board and managing director for corporate development in Spanish utility Endesa. 

He was joined by KKR fundraiser Winnie Wutte, who was a director in the US asset manager’s client and partner group team. 

The pair’s departure coincided with the USD 7.4bn final close of KKR’s third global infrastructure fund –  KKR Global Infrastructure Investors III – in September 2018.

They have been joined by Morgan Stanley commodities originator Nichole Hildebrand, former head of strategy and alliances at Telefonica Sebastián Urbán Muñoz, and former head of renewables at Allianz Capital Partners David Jones. 

It is understood that the firm hopes to leverage the team’s understanding and network of industrial investors to originate transactions outside of formal auction processes.

 

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