EQT gets EUR1.2bn for infrastructure fund

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EQT has closed its first infrastructure fund at EUR1.2bn, exceeding its target of EUR1bn. The fund will invest in infrastructure assets in Northern and Eastern Europe, with the potential to invest globally. EQT estimates that the Nordic region alone will need EUR25bn of annual investments in infrastructure until 2030.

The fund will target; regulated/market-based basic infrastructure, such as gas pipelines, power generation assets, power transmission & distribution facilities and telecommunication towers; and concession-based essential infrastructure such as airports, toll roads, rail transportation, ports, waste, sewage and water treatment facilities. Additionally, it will look at social infrastructure and infrastructure-related services. Target investments will be deals of EUR100m-1bn in transaction size, with potential investment capacity of EUR5bn.

61% of the investor base is from the Nordic region, including Investor AB, the sponsor of EQT Infrastructure, which contributed 10% of the total commitments. Among the other investors in the fund are: AP4, Skandia, Pantheon Venture and Varma Mutual Pension Insurance Company. MVision acted as placement agent, and legal advice was provided by Clifford Chance.

The fund will be managed by a team of 16 investment professionals led by Lennar Blecher. The team will work from EQT's offices in Stockholm, Helsinki, Munich, Zurich and New York.