Ancala Partners (Ancala) has held the final close of Ancala Infrastructure Fund II, which is focused on investing in a portfolio of mid-sized infrastructure businesses across Europe. The fund raised EUR735 million, which exceeds the EUR600 million target that Ancala set in mid-2018.Ancala also expects to deploy capital through co-investment from fund LPs with a view to investing over EUR1 billion through the Fund.
Around 30 institutional investors from Europe, Australia, Asia and North America have invested in the Fund, which has a 12-year term and targets a net internal rate of return (IRR) of 10-13 per cent per annum, including an annual cash yield of 5-6 per cent. Ancala is comfortably exceeding such returns on its first co-mingled fund.
Ancala adds value for investors through pro-active sourcing and hands-on asset management, assisted by its in-house operational expertise. It believes mid-sized infrastructure companies have typically not received the full attention of their previous owners, which creates opportunities to improve operations and grow these businesses.
Ancala has already implemented successful buy-and-build strategies in its existing portfolio and has undertaken several complex corporate carve-outs, creating significant value for investors. Ancala Infrastructure Fund II has invested approximately EUR150 million in Dutch fibre-to-the-office business Fore Freedom, Icelandic geothermal business HS Orka and the UK’s Liverpool John Lennon Airport. Investors in the Fund have already been offered co-investment in HS Orka and Fore Freedom.
Spence Clunie, Managing Partner, Ancala Partners LLP, says: “Our Fund has generated substantial interest from investors globally. We are grateful for their support and the confidence they have expressed in our abilities to add value through operational improvements and by growing our portfolio companies organically and from bolt-on acquisitions.
“This highly successful fund raising marks a major step in establishing Ancala Partners as a leading European investment firm focused on delivering value from the mid-market infrastructure market through proactive sourcing and active asset management.”
