Golding Capital Partners (GCP) has closed Golding Infrastructure SICAV VII at €590 million (US$661 million), above the target size of €400 million.
This makes it the largest diversified infrastructure fund of funds ever raised in the German-speaking area. The closing underlines GCP's position as one of the leading independent providers of infrastructure investments in Europe.
Golding Infrastructure SICAV VII provides institutional investors access to a broadly diversified, international portfolio of infrastructure funds. It focuses on Europe and North America and covers all sectors including energy, transport, utilities and social infrastructure.
The fund pursues a conservative investment strategy that aims to generate early current yield as well as an overall return of 8-9%. This will be achieved by systematically building a portfolio combining yield driven infrastructure projects in the core and core-plus areas with return-oriented value add projects.
Almost 40% of investors' commitments have already been drawn down and invested in a globally diversified portfolio of leading infrastructure funds comprising more than 150 individual projects.
Over 40 institutional investors have subscribed to SICAV VII. Almost two thirds of the fund volume come from existing investors.
Jeremy Golding, Founder and Managing Partner of GCP, explained:
"Now is precisely the time to invest in infrastructure as an asset class. Early dividends generated in the first year of the fund's life make a steady contribution to net investment income. In the current low-interest rate environment that is very attractive for investors."
"When we built our infrastructure team we specifically looked for direct investment experience in the infrastructure sector. Today that enables us to make swift assessments of secondaries, co-investments, complex strategies and managers with short track-records"
Dr Matthias Reicherter, Head of Infrastructure at GCP, commented:
"Investors with limited in-house resources and contacts in the infrastructure industry particularly appreciate the benefits offered by an institutional investment programme like Golding Infrastructure SICAV VII. The current strong demand for infrastructure investments makes us particularly cautious and selective when making our commitments. Our in-depth experience of direct investments enables us to identify the really outstanding managers. At the same time our strong network means we can also provide our investors with access to funds that are oversubscribed."
GCP is now one of the largest providers of infrastructure investments in Europe. It manages some €1.5 billion infrastructure assets.