Infrastructure fund Tri-Pillar today announced it will try to raise £200m as it lists on the London Stock Exchange.
The fund will be managed by a four-person investment team which previously worked together advising the John Laing Infrastructure Fund (JLIF), the FTSE 250-listed fund.
Andrew Charlesworth, a partner and chief executive of CAMG, the investment manager, said the fund will have “a wider geographic focus, capitalising on the significant and growing requirement for infrastructure in both continental Europe and North America.”
The investment adviser's management team comprises Andrew Charlesworth, Ian Ruddock, Vikki Everett and Norman Anderson. Charlesworth previously co-led the team which floated the JLIF in 2010, raising £270m.
Tri-Pillar did not disclose the valuation which it is targeting, but it will aim for a final fund size of £2bn.
The fund will target assets which require refurbishment or construction, allowing greater “value enhancement”, Charlesworth said, as well as assets where customer usage plays an important part in revenues, as opposed to “availability-based” schemes.
Availability-based schemes tend to be lower-risk opportunities with a guaranteed revenue stream, often backed by government. However, there is increasing competition in those markets, Charlesworth added, resulting in lower yields.
Tri-Pillar will aim to take advantage of massive pent-up demand for infrastructure investment around the world. The World Economic Forum estimates that $3.7 trillion (£2.8 trillion) in infrastructure investment is needed globally every year, but an annual shortfall of $1 trillion remains.
The need for increased spending have risen up the political agenda over the past year particularly in the US, where President Donald Trump made fixing American facilities such as roads, bridge and airports a central plank of his election campaign.
In North America, an estimated $4.6 trillion is required for spend on infrastructure required by 2025, according to the American Society of Civil Engineers, a US lobbying group.
However, Tri-Pillar’s management team say their investments will be targeted at the state level, avoiding exposure to political risk from a White House which has so far struggled to live up to its spending promises.
Behind the deal
Heading up the advisory team is Chris Nicholls, partner and head of equity capital markets advisory at Deloitte. A veteran initial public offering (IPO) banker from JP Morgan Cazenove, Nicholls joined Deloitte in late 2014 to build out its independent IPO and publicly limited company advisory business.
He has since advised on a number of successful transactions including the IPOs of doorstep lender Morses Club and pensions consultant Xafinity.
Nicholls also found time last year to cycle the 969 miles from Lands End to John O'Groats in Deloitte's charity nine-day "Ride Across Britain".
Also advising from Deloitte are director Peter Stewart (ex-Cannacord Genuity) and assistant director James Hunt (also formerly JP Morgan Cazenove).