InfraRed Capital Partners, the London-based asset manager created by the spin-off of HSBC Specialist Investments, has announced the final closing of its InfraRed Infrastructure Fund III. The fund received equity commitments of just over $1.2 bn (EUR 1.4 bn) from a broad range of institutional investors.

The volume exceeds the fund raising target by over $200 mln, and makes it the largest fund ever raised that focuses on 'greenfield' infrastructure.

Completion of the fund-raising comes six months after the creation of InfraRed Capital Partners from the management buyout of HSBC Specialist Investments, the private equity fund management business of HSBC. Prior to independence of the business, around half of the commitments had been raised from a small group of predominantly existing investors.

IIF3 focuses on PPP projects, including social and transportation infrastructure, with limited revenue risk. During the last 10 years, in response to the globalisation of the PPP model beyond the UK, the team expanded its geographic remit by teaming up internationally with its construction and FM business relationships. Continuing that trend, IIF3 will invest in opportunities in developed markets, namely North America, Europe, Singapore, Hong Kong and Australia.

To date, over $400 mln has already been committed to projects including the Singapore National Sports Hub; the Royal Canadian Mounted Police Headquarters in British Columbia; the expansion of the A63 autoroute in France; and the New Royal Adelaide Hospital in Australia.

Werner von Guionneau, Chief Executive Officer of InfraRed Capital Partners said: 'The opportunity for privately funded infrastructure investment in developed economies is very substantial as governments around the world look to the building of new, or the improvement of existing, infrastructure to spur economic growth.'