European Diversified Infrastructure Fund I: Igneo concludes managed wind-down of €2.0bn fund
All Press releasesWednesday, 23 October 2024: Igneo Infrastructure Partners (‘Igneo’) has announced the maturity and liquidation of its first flagship European fund, the European Diversified Infrastructure Fund I (‘EDIF I’). Being a 2009 vintage fund, EDIF I has now reached the end of its 15-year term and has successfully completed the full divestment of the fund’s assets, which has delivered approximately €5.0bn in returned capital and an average money multiple of c.2.6x to EDIF I investors.
This success highlights Igneo’s continuous focus on investing in high-quality businesses with long-term assets and applying a proactive buy-and-hold approach to asset management across the entire portfolio. Despite the recent challenging market conditions, the realisation of the fund’s assets represents an average net return and yield of 12.6% and 5.5% respectively, highlighting the investment manager’s unwavering commitment to delivering exceptional results through consistently high-quality management.
Since the fund’s inception in 2009, the investment manager deployed €2.0bn across 10 infrastructure businesses, targeting investments in European mid-market, sustainable, mature, economic infrastructure assets in the energy, transportation, utility and telecommunications sectors. In 2015, EDIF I had successfully reached its hard cap of €2.0bn in commitments from leading global institutional investors. The fund has since been succeeded by EDIF II and III which pursue the same disciplined investment strategy as EDIF I. Igneo concluded the third series of fundraising for EDIF III in April 2024, resulting in the fund growing to over €4.1bn in fund commitments.
The EDIF I portfolio comprised:
| Business | Location | Sector |
|---|---|---|
| Anglian Water | UK | Water |
| Caruna | Finland | Electricity network |
| Coriance | France | District Heating |
| Digita | Finland | Broadcasting |
| Electricity Northwest | UK | Electricity network |
| Finerge | Portugal/France | Renewable Electricity |
| Ferngas | Germany | Gas network |
| Forsea | Denmark/Sweden | Ferries & Ports |
| Parkia | Spain/Andorra | Car Parks |
| Reganosa | Spain | LNG regasification |
Niall Mills, Managing Partner and Global Head at Igneo said, “Now that EDIF I has reached maturity and the fund is now closed, we can see tangible evidence of how our long-term approach to investment generated award winning returns for our investors and their members throughout and across economic cycles. As we return capital to our EDIF I investors, we are extremely proud of how well we have been able to deliver on our promise and we look forward to continuing to do so for our investors in all the other Igneo funds. From sourcing through to implementation of operational best practice, investment in innovation, to the sale of our assets and the creation of sustainable long-term businesses, we never stop thinking about how to create value at every step of the investment lifecycle.”
About Igneo Infrastructure Partners
Igneo is an autonomous investment team in the First Sentier Investors Group. It invests in high-quality, mature, mid-market infrastructure companies in renewables, digital infrastructure, waste management, water utilities and transportation/ logistics sectors in the UK, Europe, North America, Australia and New Zealand. Operating since 1994, the team works closely with portfolio companies to create long-term sustainable value through innovation, a focus on responsible investment and proactive asset management.
Igneo manages US$20.0bn worth of assets (as at 30 September 2024) on behalf of more than 200 investors around the world.
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In the UK, this document is issued by First Sentier Investors International IM Limited which is authorised and regulated in the UK by the Financial Conduct Authority (registration number 122512). Registered office 23 St. Andrew Square, Edinburgh, EH2 1BB number SC079063. Igneo Infrastructure Partners is a UK trading name of First Sentier Investors International IM Limited. In the EEA, issued by First Sentier Investors (Ireland) Limited which is authorised and regulated in Ireland by the Central Bank of Ireland (registered number C182306). Registered office: 70 Sir John Rogerson’s Quay, Dublin 2, Ireland number 629188. Outside the UK and EEA, where this document may lawfully be issued, issued by First Sentier Investors International IM Limited, authorised and regulated in the UK by the Financial Conduct Authority (FCA ref no. 122512; Registered office: 23 St. Andrew Square, Edinburgh, EH2 1BB; Company no. SC079063).
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