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European Diversified Infrastructure Fund closes with USD2.25 billion commitments
First State Investments’ (FSI) European Diversified Infrastructure Fund FCP SIF (EDIF) has raised €2 billion (US$2.25 billion) in total commitments. In the fifth and final round of fundraising, the Fund received €721 million of additional commitments over a six month period.
The Asset 28 Jan 2015

First State Investments' (FSI) European Diversified Infrastructure Fund FCP SIF (EDIF) has raised EUR2 billion (US$2.25 billion) in total commitments. In the fifth and final round of fundraising, the Fund received EUR721 million of additional commitments over a six month period.

 

Despite challenging market conditions, the Fund's final series, opened in July 2014, is the most successful fund raising initiative of all five series and crystallizes the continuing and exceptional support from the investor community. Philippe Taillardat, partner, Direct Infrastructure Europe, commented, "We believe that this success, and that of EDIF overall, directly correlates with our unique and innovative Fund's sequential structure and governance, strong alignment of interest with our investors and long term investment philosophy, which address a number of limitations present in traditional private equity structures."

 

Marcus Ayre, partner, Direct Infrastructure Europe, said, "By focusing predominantly on European mid-market companies, we have been able to access traditionally less-competitive opportunities relative to the large deals. By implementing a prudent and long-term philosophy, minimizing operational and financing risks, we have generated value throughout the economic cycle and have enhanced ongoing returns for our clients. As a result, we have seen increasing interest from institutional investors which comes as a validation of our investment philosophy and recognition of the quality of our team."

 

Another key factor to the success of the Fund is the team's proactive approach to asset management, in particular, the integration of environmental, social and governance (ESG) policies and practices within each business.

 

"We have always targeted lead or co-lead roles to ensure we have board representation and voting rights on all decisions including the implementation of ESG principles," Niall Mills, partner, Direct Infrastructure Europe, explained.

 

"This supports FSI's philosophy and conviction that active asset management improves long-term investment returns and that adopting a responsible investment policy across businesses enables greater alignment with clients' long-term investment objectives. We believe integrating and monitoring ESG factors into the management of these companies' results in sustainable value creation benefitting both investors and the community as a whole."

 

In closing the Fund, Perry Clausen, head of global infrastructure investments, has emphazised, "We appreciate the ongoing support of investors and we will continue to focus on delivering on the EDIF objectives and strategy for the benefit of both our investors and their members."

 

EDIF is a core infrastructure fund primarily targeting European utility and transportation investments. Since the close of its first series in 2009, it has successfully deployed or reserved 70% of total commitments (EUR2 billion) into a high quality portfolio of eight infrastructure companies diversified across five sectors (water, gas, electricity, broadcasting towers and transportation) and six countries (UK, Finland, Germany, Sweden, Denmark and Spain).

 

The Fund's investor base is made up of 49 institutional investors of whom the majority are pension funds and insurance companies from a diversified client base across Europe, Asia, Australia, Middle East and North America.

 

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