Pioneer Point Partners LLP (“Pioneer”), the specialist sustainable infrastructure investment firm, has reached a Final Close of €575 million on its maiden institutional fund, Pioneer Infrastructure Partners SCSp (“The Fund”). The Final Close exceeded the €500 million target that Pioneer initially set.
The Fund generated significant interest, with commitments from 15 highly reputable and long-established European and North American institutional investors, including pension funds, endowments, insurance companies, financial institutions and family offices.
The Fund is targeting a 15+% IRR over a ten-year term, including an annual cash yield of 4-6%, through a diversified portfolio of 8 to 10 investments. It will be deployed in line with Pioneer’s historically successful lower mid-market, value-add infrastructure strategy in the energy transition and environment sectors across Western Europe, which previously saw the Firm commit over €900m of equity across ten investments on a deal-by-deal basis, delivering superior risk-adjusted returns.
Since the First Close in December 2020, The Fund has committed €120 million in two investments, including €60m to Stream BioEnergy Limited, a developer and operator of biogas plants in the Republic of Ireland and Northern Ireland, and €60m to Altano Energy, which is building a renewable energy portfolio in Spain.
The market opportunity for the Fund remains unprecedented, with trillions of euros of investment required to develop sustainable infrastructure assets across Europe and help drive the transition towards climate neutrality by 2050. While the drivers of change remain highly complex, Pioneer has the sector specialism to navigate this landscape. Through the application of its differentiated strategy, underpinned by a thematic research-driven origination strategy and private equity toolkit, Pioneer is well positioned to identify sub-sectors poised for growth ahead of others and scale platform investments to create long-term infrastructure assets.
Pioneer Point was advised on the fundraise by Cotton Ginsberg Capital Partners as placement agent and Fried Frank as legal counsel.