Orion Infrastructure Capital’s maiden fund closes above target at $370m

US middle-market infrastructure manager Orion Infrastructure Capital (OIC) has received $370m (€341.9m) in capital commitments for its maiden fund, exceeding the vehicle’s initial $350m fundraising target.

The manager said 80% of the capital raised for the Infrastructure Growth Fund came from existing OIC investors, alongside contributions from new investors from Europe and North America.

The fund’s investors included insurance companies, pension funds, foundations and family offices.

OIC said its growth debt strategy aims to address the “dislocation of debt and equity capital solutions in growth stage infrastructure sectors across North America”.  

The fund has so far allocated over 60% of its capital in six investments, the manager said. 

The fund’s investments include: Battery tech firm Forge Nano; ocean cleanup specialist Subsea Environmental Services; tidal power innovator Occurrent Power; smart glass developer Gauzy; data centre nickel-zinc battery cabinets producer ZincFive; and electric vehicle and services firm Vemo.

Nazar Massouh, co-founder and CEO of OIC, said: “We’re incredibly grateful for the support of our investors in launching this new strategy and helping us break through our $350m fundraising target. There is an exceptional need for capital in the North American infrastructure middle-market, driven by a period of sustained innovation and a desire to rapidly decarbonise the economy.

“We know that our growth debt strategy is well placed to capitalise on these macro tailwinds, while generating a positive impact for society and delivering sustainable long-term returns to our investors.”

Jeremy Glick, the head of infrastructure growth at OIC, said: “Surpassing our initial fundraising target is incredibly pleasing and being over 60% committed at final close is testament to the excellent work of the team and the market opportunity we’re seeing. 

“It’s exciting to be partnering with these fast-growing and innovative businesses. They have the potential to rapidly change the industries in which they operate, and we feel privileged to support them as they do so.”

To read the latest IPE Real Assets magazine click here.