SFP Infrastructure Partners completes third investment – taking advantage of the buyers’ market in the infrastructure space

• Over 80% of the fund’s capital deployed across three investments after successful first closing 
• The thematic niche strategy focuses on providing immediate exposure to infrastructure assets often overlooked by large-cap players by predominantly accessing the secondary market and direct co-investment opportunities
• Strong inbound pipeline of projects despite economic uncertainly, high volatility and rising interest rates
• Given the focus on inflation protected assets, the fund’s target return is expected to move up in line with increasing rates, proving the resilience of its investment strategy

The first investment is in a district heating platform that is a unique opportunity to support decarbonisation by targeting smaller cities looking for efficient energy solutions backed by strong policy and regulatory tailwinds. The project operates under long term fixed fee contracts in circa ten municipalities with the prospect to further grow the platform.  

In the second investment, the team is supporting a specialised manager that focuses on wind farms reaching the end of their regulated life and that have clear possibilities of being repowered by rehabilitating and land re-licensing. Such wind farms can be aggregated driving operational efficiencies. Repowering allows old wind turbines to be upgraded in terms of size and efficiency to increase output benefiting from secure long-term contracts. Opportunistically, also solar and biogas production facilities will be added to the portfolio. 

The third project, which has just been signed, consists of operating and expanding a nationwide whole-sale operational fibre network in a major European country. The networks are located in rural areas avoiding the oversupplied metropolitan regions and instead focusing on creating monopolistic positions in the less crowded areas.

The transactions were sourced through the network SFP Infrastructure Partners has built over the years and resulted in co-investing together with some highly regarded investors in the world. Furthermore, SFP Infrastructure Partners was invited to these transactions due to its experience in the infrastructure space, which underlines its outstanding execution ability. 

All investments are fully ESG compliant and respond to the EU’s Article 8 SFDR. At a time when the structural changes in the market are creating compelling opportunities for institutional investors, SFP Infrastructure Partners expects to maintain a strong deployment pace focussing on continuing the build-out of a robust and prudent portfolio with attractive risk adjusted returns. The overall target size for the Luxembourg-based fund is EUR 300 million.