Bahrain-based GFH Financial Group’s (GFH) sustainable infrastructure platform, Infracorp has co-invested with UK-based Equitix, in Aurora Infrastructure Oy (Aurora), a well-established monopoly electricity distribution network operating in two key geographical areas of Finland and one of the largest industrial electricity distribution networks in the Nordics region.
Aurora serves a blue-chip international industrial client base that are highly committed to the network and which has invested more than $4.8 billion combined in the Company’s two sites (AKO and ATO) since 2005.
Aurora’s AKO site serves government-backed and listed customers in traditional fuels, renewable fuels and chemical products segments, with its main clients being Neste, Borealis, Linde and Veolia. Its ATO network meanwhile, serves Outukumpu, the largest integrated plant and the only fully integrated stainless steel facility in the world.
Infracorp will also enter into future collaborative discussions with Equitix, a leading global investor and long-term fund manager of core infrastructure assets. Equitix has over $11.7 billion of assets under management and is the infrastructure investment division of Tetragon, the global asset management group which manages $80 billion of assets on behalf of its clients.
“In line with our vision, we’re pleased to announce this investment in Aurora, which provides critical power distribution infrastructure for strategic blue-chip industrial customers committed to energy transition in Finland, including the two single largest electricity consumers in the Nordics. We are delighted to be working with Equitix, a leading global infrastructure asset manager with deep experience in managing and maximizing the value of similar infrastructure assets.”
From this initial partnering, Infracorp will explore possible further opportunities to work with Equitix to invest in select infrastructure deals on a discretionary basis. Any such potential opportunities will offer the ability to strengthen Infracorp’s global infrastructure investments platform in Europe and the Americas across a range of defensive and downturn-resistant infrastructure sector investments.
Mr. Awais Majeed, Executive Director, of Private Equity at GFH, added that “In line with our strategy of investing in resilient, ESG impact sectors, this transaction marks another investment in a sector that has proven resilient and which we expect to remain relatively immune to economic cycles. Aurora operates in a stable, business-friendly environment with macroeconomic trends providing a favorable backdrop for infrastructure investments.”
Mr. Hugh Crossley, Chief Executive Officer at Equitix, said that “We are pleased to work with GFH and Infracorp on this excellent investment which provides a critical electricity network to the Finnish economy. The investment opportunities in infrastructure remain extensive and Equitix is uniquely structured to source and execute core infrastructure investments, manage them responsibly and deliver outstanding risk-weighted returns. We look forward to collaborating with GFH further. Equitix values the partnership and there is ample opportunity to explore a pipeline of attractive opportunities across the UK, Europe and the Americas together.”