Copenhagen Infrastructure Partners (CIP) has secured commitments from two major Scandinavian investors for its sixth flagship fund, which is targeting €16 billion. Norges Bank Investment Management committed €1.2 billion, while Folksam Group pledged SKr4.5 billion ($451 million; €401 million). Both investors previously backed CIP’s fifth flagship fund and were invited as part of an “anchor close” to facilitate early dialogue on structure and terms.
ECP is benefiting from a valuation tailwind in its predecessor fund ECP V, driven by portfolio company Pro Energy, a gas turbine business. Bridgepoint Group reported a 3.1x MOIC at the end of June, expected to increase to over four times following a material valuation increase. The Q3 Pro Energy valuation includes a substantial discount for execution risk and uncertainty in timing of realization.
Despite infrastructure equity being rated the most attractive asset class among institutional investors, Goldman Sachs found that high-net-worth investors showed limited interest in private infrastructure. Only 20% of baby boomers, 24% of Gen X, and 33% of Millennials named infrastructure as an alternative discussed with advisers, compared to 56%-79% favoring private equity.
I Squared Capital also announced the hiring of a new managing director, though details were not disclosed.
Source: Infrastructure Investor · Summarized by HeadlinesBriefing