Swedish private equity firm closes huge infrastructure fund

Fundraising blitz sparks concerns that industry is overpaying for assets

TRD WEEKEND EDITION /
Mar.March 16, 2019 03:00 PM

EQT secured €9 billion in contributions for infrastructure assets in sectors like energy, transportation and telecommunications.

Swedish private equity firm EQT closed its largest infrastructure fund to date, as market experts worry that the industry is overpaying for assets.

EQT secured €9 billion in contributions for infrastructure assets in sectors like energy, transportation and telecommunications, among others, the Financial Times reported. The company’s new fund surpassed its goal of €7.5 billion.

Pension and sovereign wealth funds contributed to EQT’s infrastructure fund, most of which will be deployed throughout North America and Europe, according to FT.

EQT is not the only one raising big sums for infrastructure deals. The Financial Times reported that Ardian, a private-equity firm headquartered in Paris, secured €6 billion for a European infrastructure fund, and that Brookfield Asset Management and Global Infrastructure Partners are trying to raise $20 billion for deals in the asset class.

Still, there is continued investor appetite for infrastructure. Unlisted infrastructure funds raised a record-high total of $90 billion in capital last year, according to research firm Preqin. Half of the investors surveyed by Prequin said they intend to up their allocations to the asset class over the long term (6 percent said they would decrease), but Preqin’s report noted potential headwinds from increased competition and higher asset valuations. [FT]Mary Diduch


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)

Real estate stocks push up this week as U.S.-China trade tensions ease

416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

From left: 1407 Broadway, 805 Third Avenue and 195 Broadway (Credit: Google Maps)

These were the 10 largest Manhattan real estate loans in November

The Tel Aviv Stock Exchange (Credit: Getty Images)

All Year’s Israeli bonds tumble on $41M loss

Alex Sapir and the NoMo Soho hotel at 9 Crosby Street (Credit: NoMo SoHo)

Sapir Corp.’s stock drops in Tel Aviv

55 Hudson Yards, Facebook CEO Mark Zuckerberg (Credit: Google Maps and Getty Images)

Here’s how much Facebook is paying at Hudson Yards

Michael Shvo with 711 5th Avenue (Credit: Getty Images, and Google Maps)

Michael Shvo seeking $600M to refinance Coca-Cola Building

4650 Broadway (Credit: Google Maps)

Inwood site goes for twice what seller paid last year

arrow_forward_ios