InfraRed Capital Partners – an international infrastructure asset manager – announced the final closing of InfraRed Infrastructure Fund VI, with capital commitments above $1 billion USD, including co-investment vehicles and separately managed accounts (SMAs). This is InfraRed’s sixth flagship value-add infrastructure fund, which attracted institutional investors from North America, UK, Europe, and Asia.
This fund builds on InfraRed’s differentiated value-added strategy and 25-year track record. It aims to generate value by creating or organically growing and de-risking essential mid-market infrastructure companies and projects. It targets the North American and Western European regions in three sectors: energy transition, digital, and transport.
This fund applies InfraRed’s active management expertise, sector insights, and disciplined investment methodology to develop and expand infrastructure assets capable of generating long-term and sustainable cash flows. And InfraRed’s Investment team sourced a strong pipeline of opportunities that require growth capital. So, more than 80% of the raised capital has been allocated across seven investments to date, diversified across sectors and geographies. The fund’s investments include:
1.) Voltan Energy – a company headquartered in Finland that specializes in the installation and operation of ground-source heat pumps in multi-dwelling units and other large buildings
2.) Public Safety Towers Company – a business focused on the development of wireless communications towers for US mobile carriers, leveraging a unique public safety angle
3.) Hullo – a Canadian business that provides essential transport infrastructure to address an underserved route between Vancouver and Vancouver Island
InfraRed’s team is working closely with the fund’s respective management teams to build and de-risk these investments into cash-generating hard assets and platforms capable of organic growth to drive further value uplift. The caliber of investors and co-investors committed to the fund is a testament to the quality of investments that have been secured and to the confidence in the team and approach, which has been developed over more than two decades with over 70 realizations.
KEY QUOTES:
“Our approach, grounded in over two decades of value-add experience, means that we are able to unlock decarbonisation and other megatrends requiring new modern infrastructure assets. We’re delighted by the investments and progress that we have made to date, as we seek to deliver strong risk-adjusted returns for our investors. Our team will continue to seek to capitalise on the available opportunities, compounded by the relative scarcity of flexible mid-market capital, as we look to maximise our portfolio composition.”
– Stephane Kofman, Head of Value-add Funds, InfraRed
“We are pleased that we have delivered in line with previous iterations of our Value-add strategy, despite the fund-raising back-drop. The primary fundraise was complemented with co-investments and SMAs, which attracted significant appetite. We are grateful for the support of long-standing investors and new investors from all over the world. The successful close of the Fund is testament to the enduring attractiveness of our differentiated Value-add strategy and the role it plays in our investors’ portfolios.”
– Michael Straka, Head of Capital Formation, InfraRed
