Munich-based Golding Capital Partners held the final closing at a total of €1.5 billion ($1.5 billion) for its latest infrastructure funds, with plans for follow-up funds to start raising capital through next spring.
The flagship fund of funds, Golding Infrastructure 2020, closed at €943 million, significantly above its €700 million target, officials announced. The fund is now one of the biggest in the Munich-based firm’s history and one of the largest infrastructure funds of funds in the market today. Eight subscriptions of primary funds, co-investments and secondary funds have already been made for the fund of funds.
The Golding Infrastructure Co-Investment 2020 also closed well above its original target with a €578 million fund raise. The portfolio already comprises nine infrastructure assets.
“In a more volatile and complex market environment, institutional investors particularly appreciate the characteristics of the asset class, as well as Golding’s relevant competence and proven access to attractive partners and assets,” said Matthias Reicherter, managing partner and chief investment officer at Golding, in a press statement.
The fund of funds consists of a broadly diversified portfolio of about 15 infrastructure funds from primary and secondary markets, with a focus on conservative core/core-plus investments, brownfield projects and selected co-investments. Targeting exposure to Europe and North America, the Golding Infrastructure 2020 fund is expected to return 7-8% per annum net.
“The well-thought-out, systematic structuring of attractive and solid portfolios for our investors has absolute priority for us. We are right on track with both funds in this respect and as always are focusing on broad diversification in terms of geography and sector, both for the fund of funds and for the co-investment fund,” said Thilo Tecklenburg, Managing Director and Co-Head of Infrastructure at Golding, in a statement.
The co-investment fund will allow institutional investors to supplement their existing infrastructure portfolios with selected direct investment opportunities alongside experienced fund managers. Also targeting European and North American exposure, the fund expects to net 9-10% per annum.
“We have a full pipeline of investments through to the end of the year and beyond. We rely on our network and our direct investment experience to find and analyze opportunities and select the most suitable investments for our portfolios,” added Bernd Schumacher, managing director and co-head of infrastructure at Golding. “There are still plenty of attractive opportunities even in the current market; in telecoms, energy, transport or recycling, for instance.”
The €12 billion investment firm plans to launch a follow-up product to the fund of funds this month. The next iteration of the co-investment strategy is expected in the spring of 2023. Additionally, Golding is starting its first dedicated investment strategy focused on the energy transition, which will also be structured as a fund of funds.
