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Infrastructure Largely Immune to COVID

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Stockholm (HedgeNordic) – The Covid-19 pandemic and associated economic developments have impacted consumers, companies, industries and asset classes all over the world. The coronavirus pandemic has only had a minimal impact on infrastructure, which is reflected in the fundraising climate for infrastructure funds. Evli Infrastructure Fund I, an alternative fund of infrastructure funds, raised €35 million in its third closing in mid-October to reach €104 million in assets under management.

“Our infrastructure fund has been really well received in the market, and we are pleased that we have already exceeded the fund’s minimum target size,” says Richard Wanamo (pictured), portfolio manager of Evli’s infrastructure fund. “I believe that the great interest has been driven by both the growing need of clients to diversify their portfolios through infrastructure investments and the uncertainty brought about by the corona pandemic,” he continues. “The current global situation has had only a minor impact on the unlisted infrastructure asset class. In addition, infrastructure projects generate a stable cash flow, which is particularly attractive in a low-interest-rate environment.”

Evli Infrastructure Fund I relies on a fund-of-funds strategy, aiming to select between seven and ten infrastructure funds for its portfolio. The underlying funds focus on infrastructure projects that include water and district heating companies, social infrastructure, telecommunications infrastructure such as networks and data centers, roads and ports, energy production and distribution companies, and renewable energy. Evli Infrastructure Fund I’s portfolio will cover approximately 80 to 120 infrastructure projects and companies.

The first commitments to underlying funds were made shortly after the fund was established in February this year, with the team running Evli Infrastructure Fund I aiming to make all investment commitments throughout 2020-2022. The fundraising for the fund will continue after the third closing, with the final close of the fund scheduled to take place in early 2021. The target size of the fund falls between €100 million and €200 million.

“Our portfolio managers have a good network, a lot of investment experience and a good overall picture of the market. In addition, Evli has a strong client base consisting of investors that are professional and knowledgeable,” says Tero Tuominen, Managing Director of Evli Fund Management Company. “They know what they want and are looking for good alternatives. Of course, it is also very important that you have the support of a reliable, well-established and experienced market player like Evli. This enables us to access funds managed by the most successful managers.”

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Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com

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