Arcus Infrastructure Partners has closed its fourth fund at its EUR 3bn hard cap following a seven-month fundraise, which included raising more capital from outside Europe, the UK-headquartered manager said.

Arcus European Infrastructure Fund 4 (AEIF 4), which had a EUR 2bn target, was “heavily oversubscribed”, with total demand reaching nearly EUR 5bn, according to Ronak Patel, a partner and head of capital formation and investor relations at Arcus.

“We were very keen to stay disciplined,” Patel said, adding that raising materially more “would have changed the strategy”.

The London-based manager, which closed the fundraise on December 5, secured commitments from more than 50 LPs, with around half of the capital raised from Europe and the remainder from North America, Asia and the Middle East, Patel added.

In previous fundraises, it raised materially more capital from European LPs, although investors from Asia, the Middle East and North America have committed to previous funds, he said.

The US investors in the latest fundraise include public pension plans and insurance groups, Patel said, adding that Canada has become a growing capital source.

The investor base for the fund targeting 15% plus gross IRR includes pension funds, insurers, sovereign wealth funds, asset managers, endowments, family offices and foundations. The re-up rate from existing LPs was over 85% by commitment amount.

AEIF 4 will continue the manager’s mid-market value-add strategy across Europe, targeting 12 to 14 investments with equity tickets averaging from EUR 200m to EUR 250m.

“We believe EUR 3bn is the right size of fund to continue to execute the same strategy,” Patel added.

The firm has also added staff ahead of the raise, hiring six investment professionals in 2024 and two in 2025 to date, with headcount now at 79.

Fund III, which closed on EUR 1.61bn in March 2024, is more than 75% deployed. Some investments in the fund include Powering, an Italian power leasing company; Abyss AS, a Norwegian aquaculture vessel provider; FixMap, a Polish fibre-to-the-home platform; and eze.network, a German EV charging infrastructure operator.

Arcus, established in 2009, manages EUR 12.5bn across four offices in London, Luxembourg, Lisbon and Amsterdam.

William Blair acted as placement agent. Weil Gotshal & Manges advised on legal and PwC on tax.