SL Capital Infrastructure Fund II
What does the fund do?
SL Capital Infrastructure Fund II (SLCI II) is a long-term unlisted vehicle overseen by the Manager’s highly experienced Infrastructure team. The fund is looking to acquire a diversified portfolio of up to ten operational economic infrastructure assets across Europe and the UK. Pictured is Unitank – a liquid oil storage business operating across Germany and Belgium.
Why do we like the investment?
SLCI II will be investing out to 2035, and possibly beyond, in assets that should offer long term, sustainable and predictable cash flows, often with an element of inflation linkage. The fund has a target return of 8-10% p.a. net of fees, half of which is expected to be generated from income. The Company committed €28.5m to SLCI II in 2018, the majority of which has been drawn and invested in a portfolio of solar farms in Poland; a UK rail rolling stock investment; two district heating investments in Finland and an energy storage business operating in both Germany and Belgium. Comparable listed funds often trade at a premium to net asset value and changes in premium levels can add to return volatility. Accessing this attractive asset class through an unlisted vehicle improves the risk-return trade-off for the Company’s shareholders.
In which year did we first invest?
Where is their head office?