Montagu to launch €500m infra fund

Oscar Geen
12 March 2018

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Montagu Private Equity is in the early stages of launching an infrastructure strategy with a target of €500m, Unquote understands.

The new fund will focus on PE-like infrastructure core-plus investments with the goal of offering synergies with the firm's latest buyout fund, a €2.75bn vehicle that held a final close in August 2015.

Montagu has a history of sourcing and investing in infrastructure-like assets such as Emitel and ADB Airfield Solutions.

It acquired Polish TV and radio broadcast infrastructure operator Emitel for an enterprise value of €425m in March 2011 and sold it to US infrastructure fund Alinda Capital Partners in December 2013.

The GP also owned air traffic control and services company ADB Airfield solutions prior to PAI Partners. Montagu bought the company from Siemens in 2009 and sold it to PAI for around €320m in 2013, before Carlyle acquired it for around €900m in July 2017.

As in the case of Emitel, Montagu regularly originates opportunities that are subsequently undertaken by infrastructure funds. It aims to generate superior returns to standard infrastructure funds by bringing a more operational approach to the asset class.

Like the buyout funds, the new strategy will focus on companies in stable and growing sectors with consistent cashflows, low cyclicality and strong management teams.

Montagu declined to comment on the new strategy.