Zak Bentley
The deal is expected to see storage provider BESS grow a portfolio of over 60MW by the end of the year. The investment is Tiger Infrastructure’s first venture into the UK market and its maiden storage commitment since its formation in 2009 by Julian Robertson and Emil Henry, former assistant secretary of the US Treasury.
Current commitments stand at around €110m after a second close in the summer – this followed a €66 million first close at the end of March. The Swiss vehicle has also secured its second investment, deploying C$120m into energy storage sites in Canada.
The fund’s £1bn predecessor is exhibiting a 20.6% return in the three years since it closed, reveals the insurer.
The two firms are planning a second offering following the sale to ERG. The new venture will be partly financed through recycling some of the sale capital, but will also tap the market for fundraising proceeds in excess of €100m.
More than 70 percent of the deals made by the firm’s $4bn fund III have now been invested in the telecoms and broadband sector.
The Tri-Pillar Infrastructure Fund will target greenfield and brownfield investments in both Europe and the US, with an expected IRR of between 8% and 10%.
The deal is the second time the pair have teamed up as BIG seeks to double its 115MW portfolio. The project has been bought from the Green Investment Group as the last transaction following BIG's acquisition of 20 assets from the revamped Green Investment Bank.
Overseas investors are behind 50% of the commitments for the vehicle targeting returns in the mid to high teens.
The firm and partner Tozzi Green secure debt for the 25.2MW project three years after they paid €100m for the site.
The green infrastructure firm says it aims to ‘revolutionise’ the fund model by delivering returns with zero net cost. It is targeting investments in water, waste, renewable energy, energy transmission and distribution, sustainable agriculture and energy efficiency.