Real Assets, Real Value – Industry Report,  July – Aug 2024

Real Assets, Real Value – Industry Report,  July – Aug 2024
A select summary of notable transactions, people moves and Insights from the past month.

Executive Summary

Over the past month, there have been significant developments in the European infrastructure and private markets sector. Key themes include continued investment in renewable energy and sustainability projects, strategic partnerships and acquisitions to expand market presence, and new fund launches targeting areas like energy transition and digital infrastructure.

Notable deals include Macquarie's launch of a new onshore renewable energy business, Brookfield's recognition as the world's largest impact investor, and KGAL's successful closing of its renewable energy fund at €1.3 billion. The sector continues to show strong growth and investor interest despite economic headwinds, with a particular focus on sustainable and impact investments across energy, infrastructure, and real estate sectors.

Major Deals

Energy Sector:

1. Macquarie Asset Management launches Aula Energy, a new onshore renewable energy business focused on developing, owning and operating utility-scale wind and solar projects in Europe. (July 27, 2024)
   
   
2. KGAL's green energy fund KGAL ESPF 4 completes its investment phase, with a total of €1.3 billion invested in 33 wind and solar parks across Europe. (July 20, 2024)
   
   
3. Equitix acquires a Spanish hybridisation portfolio, expanding its presence in the renewable energy sector. (July 17, 2024)
   
   
4. Energy Infrastructure Partners (EIP) raises €1 billion in investor commitments for the first close of its global energy transition infrastructure fund. (July 2024)
   
   
5. IFM Investors acquires a majority stake in GreenGas, a leading renewable natural gas (RNG) developer and operator in the United States. (July 27, 2024)
   
   
6. Brookfield Asset Management named world's largest impact investor, with over $100 billion in impact assets under management. (July 29, 2024)
   
   
7. NextEnergy Capital's NextPower V ESG fund acquires a c.50MW solar project portfolio in Europe. (July 30, 2024)
   
   
8. Foresight Group Holdings Limited announces the acquisition of Thermomess Wärmemessdienst AG by its portfolio company, Officium GmbH, almost doubling its sub-metering portfolio. (March 14, 2024)

Infrastructure Sector:

1. Argo Infrastructure Partners increases its ownership stake to represent a majority interest in TierPoint, a data center and cloud services firm, with a total investment of ~$700 million since 2020. (July 11, 2024)
   
   
2. Vantage Data Centers raises an additional $2.8 billion in capital commitments, bringing their total to $9.2 billion after investor demand surpassed expectations. (July 31, 2024)
   
   
3. Royal Caribbean Group forms a strategic partnership with iCON Infrastructure to launch a new chapter of destination development, focusing on cruise terminal facilities and infrastructure. (July 31, 2024)
4. Infranity secures €2 billion for infrastructure impact debt funds, doubling its target. The funds will focus on sustainable infrastructure investments. (July 2024)
   
   
5. AXA IM Prime enters into an agreement to acquire a 20% equity stake in Rivage Investment, a leading investment manager focused on infrastructure debt. (July 30, 2024)
   
   
6. Capital Dynamics acquires a 100% equity stake in six solar photovoltaic assets in Spain, as part of two acquisitions. All six assets have entered into power purchase agreements with an unnamed S&P 500 company. (July 3, 2024)
   
   
7. Arjun Infrastructure Partners secures €1.4 billion for core and core-plus infrastructure strategy. (May 8, 2024)
   
   
8. I Squared Capital invests $200 million in Aurora Utilities Limited (Aurora), an Independent Distribution Network Operator (IDNO) platform in the UK. The investment will support the build-out of EV charging stations, battery storage sites, commercial and industrial electrification, and new residential housing developments. (July 30, 2024)

Real Estate Sector:

1. Stonepeak to acquire Arvida Group, one of New Zealand's largest retirement and aged care providers, for approximately US$1.25 billion. (July 21, 2024)
   
   
2. PATRIZIA invests c. EUR 70 million in a modern industrials portfolio located in Italy's "golden triangle" sub-market, continuing the expansion of its pan-European logistics platform. (June 24, 2024)
   
   
3. Dexus expands industrial platform with $1.5 billion of acquisitions and developments, including Jandakot Airport in Perth, a logistics facility in Kemps Creek, NSW, and an asset in Truganina, VIC. (September 23, 2024)
   
   
4. Blackstone leads $600 million investment in Quinbrook's solar and storage fund. (July 5, 2024)
   
   
5. Cohen & Steers reports that European listed REITs rallied significantly to end 2023, up more than 30% over the last two months of the year. (January 2024)

People Moves

1. Macquarie Asset Management expands into fund finance, providing financing solutions to private equity and real estate fund managers. (July 26, 2024)
   
   
2. Connor Teskey, a 36-year-old rising star at Brookfield Asset Management, is being groomed to become the next CEO. (July 18, 2024)
   
   
3. CBRE Investment Management hires Mariana Barrientos as director to join its European private infrastructure markets team. (July 18, 2024)
   
   
4. Edmond de Rothschild Asset Management appoints Regine Wiedmann as Head of Distribution for the DACH region. (July 11, 2024)
   
   
5. UBS Asset Management has hired Joseph Azelby to succeed Thomas Wels as head of real estate and private markets. (July 29, 2024)
   
   
6. Palladio Partners expands partner roster by adding Sven Czermin as a new partner, bringing the total number of partners to 10. (July 23, 2024)
   
   
7. Carolin Vormann appointed as Head of Institutional Business at KGAL. (July 29, 2024)
   
   
8. Gül Poslu appointed as Head of Benelux at Nuveen, based in Amsterdam. (July 30, 2024)

Fund Launches and Closings

1. Barings closes third vintage of European Private Loan Strategy at €7 billion. (July 6, 2024)
   
   
2. Asterion Industrial Partners' fund III reaches over €1.5 billion at first close, within 5 months of launch. (July 23, 2024)
   
   
3. iCON Infrastructure Partners VI closes above target at $3.6 billion, three months after launch. (July 31, 2024)
   
   
4. Eurazeo announces the final close of its first transition infrastructure program, the Eurazeo Transition Infrastructure Fund (ETIF), with €210 million in commitments. (July 16, 2024)

Market Trends and Insights

1. A survey conducted at Palladio Partners' annual Investors Day reveals that 84% of those polled wish to further expand allocations to infrastructure as an asset class. (July 1, 2024)
   
   
2. European bank shares have climbed 20% this year, fuelled by 120 billion euros of profits expected from the sector in 2024. (July 22, 2024)
   
   
3. BNP Paribas Asset Management updates its asset allocation, including doubling its position in US tech stocks and taking long positions in Eurozone banks and the US NASDAQ. (July 17, 2024)
   
   
4. Manulife Investment Management sees attractive opportunities outside the US amid anticipated global rate-cutting cycle. (July 24, 2024)
   
   
5. CIBC Asset Management expands the CIBC Investment Grade Bond Funds lineup with new ETF series. (July 16, 2024)

Summary

This report highlights the continued growth and evolution of the European infrastructure and private markets sector, with a strong focus on sustainable investments, renewable energy, and digital infrastructure.

The significant deal flow, strategic partnerships, and fund launches demonstrate the sector's resilience and attractiveness to investors, despite ongoing economic challenges. As the industry continues to adapt to changing market conditions and increased focus on ESG factors, we can expect to see further innovations and opportunities in the coming months.

 

Sources:

Macquarie Group: https://www.macquarie.com/au/en/about/news/2023/macquarie-asset-management-launches-onshore-renewable-energy-business-aula-energy.html

KGAL: https://www.kgal.de/en/newsdesk/pressnews/detail?tx_t2news_news%5Bcontroller%5D=News&tx_t2news_news%5Bnews%5D=358&cHash=3d494b80a0f2c532f6c3eaf333d9f4bf

Equitix: https://equitix.com/news/equitix-acquires-spanish-hybridisation-portfolio/

Energy Infrastructure Partners: https://energy-infrastructure-partners.com/with-funding-of-eur-1bn-energy-infrastructure-partners-holds-first-close-of-its-energy-transition-infrastructure-fund/

IFM Investors: https://www.businesswire.com/news/home/20230131006104/en/GreenGas-to-Partner-with-IFM-Investors-to-Accelerate-Growth-of-Renewable-Energy-Solutions

Brookfield: https://www.brookfield.com/news-insights/insights/brookfield-named-worlds-largest-impact-investor

NextEnergy Capital: https://www.nextenergycapital.com/news/50mw-solar-project-portfolio-acquired-in-europe/

Foresight Group: https://arcusip.com/arcus-acquires-thermomess-almost-doubling-the-officium-sub-metering-portfolio/

Argo Infrastructure Partners: https://finance.yahoo.com/news/argo-infrastructure-partners-announces-majority-140400257.html

Vantage Data Centers: https://realassets.ipe.com/news/vantage-data-centers-raises-additional-28bn-to-support-expansion/10073839.article

Royal Caribbean Group: https://www.prnewswire.com/news-releases/royal-caribbean-group-forms-a-strategic-partnership-with-icon-infrastructure-to-launch-new-chapter-of-destination-development-301705805.html

Infranity: https://realassets.ipe.com/news/infranity-secures-2bn-for-infrastructure-impact-debt-funds-doubling-target/10071620.article

AXA IM Prime: https://www.axa-im.com/media-centre/axa-im-prime-through-its-gp-stake-strategy-invest-rivage-investment-support-its-next-phase

Capital Dynamics: https://realassets.ipe.com/news/capital-dynamics-snaps-up-six-spanish-solar-assets/10074381.article

Arjun Infrastructure Partners: https://realassets.ipe.com/news/arjun-infrastructure-secures-14bn-for-core-and-core-plus-strategy/10073154.article

I Squared Capital: https://realassets.ipe.com/news/i-squared-invests-in-new-uk-electric-distribution-network-operator/10074945.article

Stonepeak: https://stonepeak.com/news/stonepeak-to-acquire-arvida-group

PATRIZIA: https://www.patrizia.ag/en/news-detail/patrizia-continues-expansion-of-pan-european-logistics-platform-with-major-investment-in-italys-golden-triangle-sub-market/

Dexus: https://www.dexus.com/investor-centre/results-and-reporting/asx-announcements/2021/september/dexus-expands-industrial-platform

Blackstone: https://realassets.ipe.com/news/blackstone-leads-600m-investment-in-quinbrooks-solar-and-storage-fund/10072563.article

Cohen & Steers: https://www.cohenandsteers.com/insights/the-real-estate-reel-european-real-estate-investing-three-data-points-were-watching-now/

CBRE Investment Management: https://realassets.ipe.com/news/barrientos-joins-cbre-investment-managements-emea-infrastructure-team/10057666.article

Edmond de Rothschild Asset Management: https://www.edmond-de-rothschild.com/en/news/press-release/v2/9630-edmond-de-rothschild-am-appoints-regine-wiedmann-as-head-of-distribution-for-the-dach-region

UBS Asset Management: https://realassets.ipe.com/news/ubs-am-hires-azelby-as-head-of-real-estate-and-private-markets/10029991.article

Palladio Partners: https://palladio-partners.com/fileadmin/files/files_news/240723_PM_PalladioPartners_SvenCzermin_new_partner.pdf

KGAL: https://www.kgal.de/en/newsdesk/pressnews/detail?tx_t2news_news%5Bcontroller%5D=News&tx_t2news_news%5Bnews%5D=386&cHash=4dae4c4220baeaf670dc62478b136e72

Nuveen: https://www.nuveen.com/global/insights/news/2024/nuveen-expands-european-footprint-with-appointment-of-head-of-benelux

SWEN Capital Partners: https://www.swen-cp.fr/en/swen-impact-fund-for-transition-2-swift-2-reaches-final-close-well-above-target/

Barings: https://www.prnewswire.com/news-releases/barings-closes-third-vintage-of-european-private-loan-strategy-at-7-billion-301580684.html

Asterion Industrial Partners: https://www.asterionindustrial.com/asterions-fund-iii-reaches-over-e1-5-bn-at-first-close-within-5-months-of-launch/

iCON Infrastructure: https://irei.com/news/icon-infrastructure-partners-vi-closes-target-three-months-launch/

Eurazeo: https://www.eif.org/what_we_do/equity/news/2022/eurazeo-invest-eu-first-close-transition-infrastructure-fund-support-low-carbon-econony-transition.htm

BNP Paribas Asset Management: https://www.bnpparibas-am.com/en-us/portfolio-perspectives/update-to-our-asset-allocation-doubling-us-tech-and-other-changes/

Manulife Investment Management: https://finance.yahoo.com/news/manulife-investment-management-sees-attractive-010500200.html

CIBC Asset Management: https://finance.yahoo.com/news/cibc-asset-management-inc-announces-113000720.html