New investment club

New core/core+ infrastructure partnership for institutional investors

The Nordic Investment Club has committed nearly EUR 270 million to be invested with DIF Capital Partners, a leading global infrastructure manager.

The details

The commitment will be invested with DIF’s core flagship fund, DIF VII, and DIF’s core+ fund, CIF III. DIF’s flagship strategy has an extensive and proven track record with more than 110 exits since 2005. Launched in 2017, the CIF strategy is more recent, but is off to a very strong start with significant momentum.

Our CEO Anders Dalhoff comments: “DIF Capital Partners have shown a consistent development and is today one of the most recognized global core infrastructure managers. They have proven that they are able to successfully manage two strategies, making this an interesting opportunity for members of the Nordic Investment Club to tailor their individual exposure between DIF’s strategies.”

The two fund strategies complement each other, offering investors an opportunity to achieve a blended risk-return profile that captures both attractive upside potential across a diversified portfolio while maintaining significant focus on downside protection. The investment club is a collaboration between a group of Danish pension funds, one of Denmark’s largest banks, Sydbank, and professional investors from Finland. Additional professional investors are expected to join the club in the coming months.

As is the case with other clubs on Advantage Investment Partners’ platform, the club size reduces the aggregate investment costs of the club members, which will result in improved net returns for the pension savers and bank clients. 

DIF VII follows a core strategy and will invest in about 25 projects within renewable energy, utilities, and public private partnerships, characterized by long-term contracts and stable and predictable cash flows. CIF III focuses on lower mid-market assets with a slightly higher risk-return profile and will expectedly make 15-18 investments across digital infrastructure, energy transition, and transportation. Both DIF VII and CIF III are labelled as article 8 funds under the EU’s Sustainable Finance Disclosure Regulation, and will promote investments with sustainable characteristics.

The funds have made their first investments, with DIF VII’s first being Alight, a Nordic solar developer. Since then, three additional transactions have been completed. CIF III has made eight investments to date, including US digital infrastructure platform Airtower Networks, Greener, a Dutch mobile battery solution provider, Rail First, Australia’s leading rail freight leasing company, and Bump, a French EV charging operator.