UBS mulls GP-led on debut infra fund

The asset manager has extended the life of Archmore International Infrastructure Fund I by two years and given LPs the option to cash out.

UBS Asset Management is carrying out a secondaries process on its debut infrastructure fund.

The Swiss firm has decided to extend the end date of Archmore International Infrastructure Fund I from 2022 to 2024 while giving limited partners the option to sell all or part of their holdings to a secondaries buyer. The deal came to light in document prepared by Devon County Council Pension Fund, which said it would “monitor closely” the opportunity to ensure it receives maximum value from the winding down of the fund.

One of the assets held by the fund is a stake in UK utility Southern Water, which last year pleaded guilty to criminal charges brought against it by the Environment Agency in relation to a series of sewage leakages. as reported by sister title Infrastructure Investor. Other investments include Austrian waste management group Saubermacher and US-based gas-fired plant operator Northern Star Generation.

Secondaries Investor understands that Campbell Lutyens is the advisor.

Fund I raised $1.15 billion by final close in 2010, according to data from Infrastructure Investor. It had $909 million of gross asset value remaining as of August, according to its form ADV.

The average price of a stake in an infrastructure fund – excluding energy – was 93 percent of net asset value last year, compared with 89 percent for a buyout fund – the first time since at least 2013 that infra has priced higher, according to data from investment bank Greenhill.

“Infra assets offer stable and predictable cashflows, which are in demand at the moment,” Greenhill managing director Bernhard Engelien told Secondaries Investor.

UBS and Campbell Lutyens declined to comment on the secondaries process.

– Rod James and Zak Bentley contributed to this report