First State Investments’ launches third European Diversified Infrastructure Fund (EDIF III)

EDIF III will pursue the same investment strategy as the two existing European Diversified Infrastructure Funds (EDIF I and EDIF II) managed by the First State unlisted infrastructure team, constructing a portfolio of mature infrastructure assets targeting investments primarily in the energy, transportation and utility sectors in Europe.

EDIF III aims to reach its target size of €3.5 billion, over three to five fundraising series. The series fundraising is designed to ensure focused investment discipline, while delivering rapid deployment of investors’ capital. Niall Mills, Partner, Infrastructure Investments at First State Investments, commented: “Our environmental, social and governance-led strategy builds on our experience and belief that sustainability is inseparable from infrastructure investment. ESG principles are at the core of what we do and embedded at every stage of the investment cycle, to ensure we are managing assets in the most responsible and sustainable way, on behalf of our investors.”

Marcus Ayre, Partner, Infrastructure Investments at First State Investments, continued: “The European mid-market remains attractive, offering a range of high-quality mature businesses that are demonstrably well managed and income generating. First State has a 25-year track record in infrastructure investment and works closely with management to effectively influence business strategy, manage risks, add value for investors while acting as a promoter of industry best practice. We continue to see strong demand from institutional investors for investment opportunities offering long-term predictable and stable income. We’ve been delighted by the strong support we’ve received from investors in our existing funds and are excited by the opportunity to continue to grow our portfolio and investor base.”

In July 2019, First State Investments announced that EDIF II had successfully reached its hard cap of €2.6 billion in commitments from leading global institutional investors, with approximately 70 percent of capital deployed. This followed the close of EDIF I in 2015 at €2 billion.

The EDIF team currently manage a portfolio of assets across Europe, including Anglian Water, Caruna, Coriance, Electricity Northwest, Ferngas, Finerge, Forsea, OLT, Parkia, Scandlines, Swedegas, Utilitas and Weum. They are part of the First State Investments’ global infrastructure business that manages in excess of €8bn equity invested in infrastructure investments.