The Fund builds on InfraRed’s differentiated value-add strategy and 25-year track-record. Its aim is to generate value by creating or organically growing and de-risking essential mid-market infrastructure companies and projects. It is targeting the North American and Western European regions in three sectors: energy transition, digital and transport. These strategies are underpinned by global megatrends creating compelling long-term investment opportunities, allowing for strong exit positions in attractive markets. The Fund applies InfraRed’s active management expertise, sector insights and disciplined investment methodology to develop and expand infrastructure assets capable of generating long-term, sustainable cash flows.
InfraRed’s Investment team has sourced a strong pipeline of opportunities that require growth capital, drawing on their deep resource and experience to take a view on relative value and entry points. As a result, more than 80% of the raised capital has been allocated across seven investments to date, diversified across sectors and geographies. The Fund’s investments include:
- Voltan Energy – a company headquartered in Finland that specialises in the installation and operation of ground-source heat pumps in multi-dwelling units and other large buildings;
- Public Safety Towers Company – a business focused on the development of wireless communications towers for US mobile carriers, leveraging a unique public safety angle; and
- Hullo – a Canadian business that provides essential transport infrastructure to address an underserved route between Vancouver and Vancouver Island.
The investments are at varying degrees of maturity, with most generating revenues and having seen valuation uplifts. InfraRed’s team is working closely with the Fund’s respective management teams to build and de-risk these investments into cash generating hard assets and platforms capable of organic growth to drive further value uplift.
The calibre of investors and co-investors that have committed to the Fund is a testament to the quality of investments that have been secured and to the confidence in the team and approach, which has been developed over more than two decades with over 70 realisations. Earlier this year, PitchBook recognised InfraRed’s Value-add strategy as one of the top ten performing infrastructure fund families globally when compared against all GPs fund families and their respective vintages.*
Stephane Kofman, Head of Value-add Funds, InfraRed, said: “Our approach, grounded in over two decades of value-add experience, means that we are able to unlock decarbonisation and other megatrends requiring new modern infrastructure assets. We’re delighted by the investments and progress that we have made to date, as we seek to deliver strong risk-adjusted returns for our investors. Our team will continue to seek to capitalise on the available opportunities, compounded by the relative scarcity of flexible mid-market capital, as we look to maximise our portfolio composition.”
Michael Straka, Head of Capital Formation, InfraRed, said: “We are pleased that we have delivered in line with previous iterations of our Value-add strategy, despite the fund-raising back-drop. The primary fundraise was complemented with co-investments and SMAs, which attracted significant appetite. We are grateful for the support of long-standing investors and new investors from all over the world. The successful close of the Fund is testament to the enduring attractiveness of our differentiated Value-add strategy and the role it plays in our investors’ portfolios.”
ENDS
* PitchBook’s Global Manager Performance Score League Tables report is based on a data-driven methodology to identify and rank the ‘top performing’ private capital fund strategies. Pitchbook’s methodology can be found here – https://pitchbook.com/news/reports/2023-pitchbook-global-manager-performance-score-league-tables
Fund VI investments
About InfraRed Capital Partners
InfraRed Capital Partners is an international infrastructure asset manager, with more than 160 professionals operating worldwide from offices in London, Madrid, New York, Sydney and Seoul. Over the past 25 years, InfraRed has established itself as a highly successful developer and steward of infrastructure assets that play a vital role in supporting communities. InfraRed manages US$13bn of equity capital [1] for investors around the globe, in listed and private funds across both core and value-add strategies.
A long-term sustainability-led mindset is integral to how InfraRed operates as it aims to achieve lasting, positive impacts and deliver on its vision of Creating Better Futures. InfraRed is a signatory of the Principles of Responsible Investment (PRI) [2], a member of the Net Zero Asset Manager’s Initiative, and is a TCFD supporter.
InfraRed is part of SLC Management, the institutional alternatives and traditional asset management business of Sun Life. InfraRed represents the infrastructure equity arm of SLC Management, which also incorporates BGO, a global real estate investment management adviser, and Crescent Capital, a global alternative credit investment asset manager.
For more information, please visit www.ircp.com.
[1] Uses 5-year average FX as at 31st March 2024 of GBP/USD of 1.2839; EUR/USD 1.1179. EUM is USD 12.927m
[2] Information on the Principles for Responsible Investment (“PRI”) ratings are available at https://www.unpri.org/about-the-pri
