Case study Altitude Infra
Investing in an attractive French fibre operator alongside significant co-investment capital
InfraRed invested in a position in a major French fibre company operating in the attractive rural French fibre market on behalf of its core European strategy with significant co-investment capital, drawn from multiple new and existing client relationships.
Investment
InfraRed managed funds invested in the attractive French fibre market through the acquisition in 2023 of a 19.5% shareholding interest in Altitude Infra, a major French fibre-to-the-home (FTTH) operator.
Altitude Infra holds a controlling position in the largest independent wholesale fibre network in France. As the sole provider of Fibre-to-the-home (FTTH) in its 28 subsidised Public Initiative Networks (PINs), Altitude Infra currently offers high-speed fibre optic broadband services to over 4 million homes, which is expected to rise to over 5 million homes by 2030. It now has over 2 million homes connected and more than 30% of the market share in parts of rural France, having invested over €5 billion since inception.
France has a particularly well-established fibre market framework conducive to accelerating the roll-out of high-speed broadband access in rural areas. It is underpinned by a national initiative to achieve a full FTTH rollout by 2025 and full decommissioning of the copper network by 2030, and this is regulated and overseen by ARCEP, the French telecom regulator.
Altitude Infra earns inflation-linked wholesale revenues which it generates from the sale of its broadband and network services to the major and well-known telecom players such as Orange, Free, Bouygues Telecom and SFR. Increased demand for high-speed connectivity is also generating growth opportunities in adjacent sectors such as smart cities (CCTV, Internet of Things), 5G mobile networks, EV charging stations, amongst several others.
InfraRed deployed capital from a variety of sources including several core strategies that it manages, as well as co-investment from a number of institutional investors.
Initial investment
2023
Theme
Communications & Digital Infrastructure
Strategy
Core Infrastructure / Co-investment
Country
France
Altitude Infra Key statistics
Impact
Our investment into Altitude Infra is a result of the strength of our relationship with the management team and our collective alignment on the ways to evolve the business and to participate in the growth opportunities in the sector. We also have developed a close partnership with the founding family, helping to contribute to the long-term stewardship of the business.
Our co-investors were highly supportive of the investment thesis, as well as the sector tailwinds – rising data consumption and internet penetration, amongst others. Post-investment, we maintain strong relationships through consistent and detailed updates, ensuring our co-investors are well-informed and remain satisfied with the management of the asset.
“We are excited about our investment in Altitude Infra which is a business underpinned by strong fundamentals; the significant co-investment interest in the deal is a testament to InfraRed’s deal sourcing and asset management capabilities. InfraRed’s co-investment framework was established in response to the increased demand for co-investment from across our investor network. It provides a repeatable and smooth process that enables us to deliver a first-class service to clients.”
