Pioneer Point Partners, a specialist in sustainable infrastructure investment, has completed its first institutional fund, Pioneer Infrastructure Partners, with a final close of €575 million.
Pioneer’s initial objective of €500 million was surpassed in the last close.
With pledges from 15 prominent and long-established European and North American institutional investors, including pension funds, endowments, insurance companies, financial institutions, and family offices, the Fund drew a lot of attention.
Through a diverse portfolio of 8 to 10 investments, the Fund aims to achieve a 15+ percent IRR over a ten-year period, with an annual cash dividend of 4-6 percent.
It will be used in line with Pioneer’s historically successful lower mid-market, value-add infrastructure strategy in Western Europe’s energy transition and environment sectors, which has seen the Firm commit over €900 million in equity across ten investments on a deal-by-deal basis, delivering superior risk-adjusted returns.
The Fund has committed €120 million to two investments since its first close in December 2020: €60 million to Stream BioEnergy Limited, a developer and operator of biogas plants in the Republic of Ireland and Northern Ireland, and €60 million to Altano Energy, which is developing a renewable energy portfolio in Spain.
With trillions of euros needed to construct sustainable infrastructure assets across Europe and help drive the transition to climate neutrality by 2050, the market opportunity for the Fund remains unmatched.
Pioneer has the sector specialisation to traverse this landscape, even while the sources of change remain exceedingly complicated.
Pioneer is ideally positioned to identify sub-sectors ready for growth ahead of other firms scale platform investments to establish long-term infrastructure assets, according to its distinctive strategy, which is based by a thematic research-driven origination strategy and a private equity toolbox.
Cotton Ginsberg Capital Partners, as placement agent, and Fried Frank, as legal counsel, advised Pioneer Point on the financing.