InfraRed Capital Partners has established a strategic SMA with APG to invest in UK social infrastructure, starting with a £225 million portfolio.

Information on the Target

InfraRed Capital Partners, a prominent international infrastructure asset manager, has recently announced a strategic formation of a Separately Managed Account (SMA) with APG, the largest pension services provider in the Netherlands. This SMA aims to provide APG with a well-rounded exposure to social infrastructure investments across Europe. It will initiate with a significant initial portfolio of approximately £225 million, focusing on core social assets in the UK, with plans for substantial future expansion.

The initial portfolio comprises seven crucial assets acquired from HICL Infrastructure PLC, a respected FTSE-250 infrastructure investment firm. These assets are primarily centered around health and education initiatives, featuring notable projects such as Southmead Hospital and Edinburgh Schools. The arrangement further allows HICL to establish a collaborative partnership framework with APG, enabling future mutually beneficial divestments and potential co-investment opportunities. This transaction signifies an enhanced relationship between InfraRed, HICL, and APG, with APG set to become a co-owner of several assets managed by HICL.

Industry Overview in the Target’s Specific Country

The UK social infrastructure sector has been experiencing substantial growth, driven by increasing demand for essential services in health and education. The government's commitment to enhancing public services has led to numerous investment opportunities,