Specialised infrastructure and impact investment management firm Infra Impact Investment Managers has announced that its Infra Impact Mid-Market Infrastructure Fund 1 exceeded its fundraising target, reaching a successful final close at R2.15-billion, or $115-million.
The fund continues to provide growth capital for South Africa-focused mid-market infrastructure businesses. The businesses the fund invests in own real assets that provide essential services and have value-creation potential.
The fund is deployed in line with the team's historically successful mid-market, value-add infrastructure strategy concentrating on the water, waste, energy, telecommunications and related sectors, the company said.
“Infra Impact believes the market opportunity remains unprecedented, but trillions of rands of investment are still required to develop sustainable infrastructure across South Africa. This, in turn, will support job creation and economic growth.”
Further, the fund's impact investment outcomes include job creation and addressing the United Nations Sustainable Development Goals, including reduction of greenhouse-gas emissions, increasing access to clean water and sanitation, green energy and increasing access to telecommunications services, Infra Impact said in a statement.
“The commitments enable us to actively contribute towards the development of our country and uplifting communities. Using the fund, we aim to continue our record of delivering strong investor returns alongside positive outcomes for people and the planet.
“Investing in infrastructure is crucial for fostering economic growth, creating jobs and enhancing the overall quality of life in our communities,” said Infra Impact co-founder and co-managing partner Mark van Wyk.
“We are very pleased by the strong support shown by our investors, who share our vision of universal access to sustainable and reliable infrastructure services. Together, we will build a better future for South Africa.”
The investor group comprises a well-diversified array of 14 prominent limited partners, including local funds of funds, university foundations, insurers, banks, pension funds and an international development finance institution.
The successful fundraising of the fund positions the firm as a significant player in the mid-market infrastructure investment landscape in South Africa. With this, Infra Impact is well-positioned to identify, develop and manage infrastructure projects that generate attractive risk-adjusted returns, he said.
The fund has allocated nearly R300-million across four strategic investments, which include Eagle Towers, Cybersmart, Maru Towers and Rhino Energy.
“While the drivers of change in the South African infrastructure sector remain complex, Infra Impact has the sector specialism to navigate this landscape. Combining this with our differentiated strategy, we are well positioned to develop and maximise the growing interest in the infrastructure sector,” said Infra Impact co-founder and co-managing partner Morné Edas.