ALTAMAR CAPITAL PARTNERS has announced that it has exceeded the forecast target size of its Altamar Infrastructure Income II FCR fund with a final closure of €430M. The fund recently received the final investor commitments, reaching a figure considerably higher than the initial target of €350M, after a difficult year of lockdown due to the pandemic.

The fund’s investor-base is spread across Spain, Latin America and other European countries and is made up of institutional investors, family offices and private banking clients. A very large proportion of the institutional clients that invested in the first infrastructure fund have again relied on ALTAMAR and made new investment commitments in this second vehicle launched by the firm. This has been achieved thanks to the excellent performance of the predecessor fund, with a solid portfolio diversified by strategy, sector and operation size, and managed by a range of GPs with an excellent track record, selected by ALTAMAR after a thorough due diligence process.

Most of the assets that comprise Altamar Infrastructure Income II FCR Fund belong to sectors that will drive the economic recovery, where large investment volumes are necessary. Examples include telecommunications, energy transition and social infrastructure. The appropriate construction of this portfolio by vintages, with 50% already committed (ncluding secondary and co-investments), is allowing us to offer very good results. Thus, despite the young vintage and the devastating pandemic that has forced managers to apply cash restrictions out of prudence, the Fund has received yield distributions which have in turn delivered investors a 3.2% dividend in relation to to 2020.

Altamar Infrastructure Income II maintains a similar investment philosophy to that of the first fund: an investment philosophy based on capital-preservation, with a primary focus on brownfield assets, OECD geographies (predominantly Europe and North America), and with an operational focus being a main value creation lever. The portfolio consists of a combination of primary funds (a minimum of 60% of the fund) and secondary and co-investments (up to a maximum of 40%), with an investment period of 3-4 years, leading to a final portfolio of 180-200 underlying investments.

The infrastructure sector is highly attractive when it comes to building investment portfolios, thanks to its business models that offer predictability and stability of cash flows, yield generation, and high resilience against inflation and rate hikes. This has been widely demonstrated in this pandemic, not only because of the dividend achieved, but also because of the minimal impact on the portfolio value. After just two quarters, the small negative effect (less than 4% NAV) has been absorbed. “However, to achieve this resilience, and to avoid the risks that mismanagement of infrastructures entails, it is essential that the selection of the different asset managers reflect the objectives communicated to investors”, said Ignacio Antoñanzas, Managing Partner and Founding Partner of ALTAMAR

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