Arjun Infrastructure Partners is targeting a first close next quarter of up to EUR 800m for its third blind pool infrastructure fund, which is seeking a total of some EUR 2.5bn of commitments on top of co-investments, sources said.

The London-headquartered manager led by Surinder Toor recently began fundraising for the latest fund, Arjun Infrastructure Alliance Europe 3 – on the heels of closing in May its second flagship fund with about EUR 1.1bn of commitments plus EUR 300m of co-investment capital, versus a target of EUR 1.5bn.

The manager hopes the latest fund will raise between EUR 600m and EUR 800m of commitments for its first close in the first quarter of 2025.

Arjun is targeting a net IRR of 10% to 13% for its latest fund, while the previous fund, Arjun Infrastructure Alliance Europe 2, targeted 9% to 11% returns – a move that reflects higher interest rates.

As well as being a 12-year fund while the prior fund has a 15-year life, Arjun is also spreading its net more widely for limited partners, targeting ones in Germany, Japan and North America, while for previous vehicles it focused more on LPs in the Nordics and the Middle East.

University Pension Plan Ontario earlier this year committed an undisclosed amount to Arjun’s second flagship fund, Infrastructure Alliance Europe 2, as well as co-invested in Angel Trains alongside Arjun.

Arjun’s first fund, Infrastructure Alliance Europe, held a final close in March 2021 at EUR 1bn backed by investors including Norway’s largest pension fund KLP, Danish private pension fund Industriens Pensionsforsikring and Swedish public pension fund AP4.

Arjun’s most recent deals, both agreed last year, are its purchase of minority stake in Angel Trains from PSP Investments and a co-controlling stake in French fibre developer Altitude Infra.

Arjun has eight full-time investor relations executives led by Francois Bornens, half of whom are involved in product support.