The European Investment Bank (EIB) and the Banque des Territoires have led an initial €100m fundraising by Advisors & Partners (A&P) for a newly launched European transport infrastructure transition finance fund.
A&P said it has raised the capital for Selective European Transportation Equipment Fund (SETEF), the first fund in a series of private equity infrastructure transition finance funds dedicated to the long-term development, operation and financing of European transportation equipment assets.
SETEF has set a €160m fundraising target with a hard cap of €208m. A&P expects to raise the additional capital by the end of 2024.
Part of the strategy will be to own freight railcars and river barges to be leased out, under operating leases, to logistics operators, private and state-owned railway companies, as well as industrial businesses throughout Europe and neighbouring countries, generating long-term and stable revenues.
A&P said it had appointed Touax Group, an operator and lessor of transportation equipment assets, as SETEF’s preferred operating company, adding that Touax will operate alongside other operating companies to be appointed in due course.
Philippe Teilhard de Chardin, CEO of Advisors & Partners, said partnering with EIB and Banque des Territoires and Touax will help “aggressively drive the modal shift” of freight transportation from road and onto both railways and inland waterways.
He said: “Our collaboration will allow investors to participate directly in transition finance towards a low carbon economy, helping to reduce CO2 emissions within the transport sector, the largest contributor of carbon emissions in Europe.”
Pascal Varin, investment advisory committee executive member at Advisors & Partners, said: “Our collaboration and investment lead will allow investors to take advantage of a major need for equipment modernisation in replenishing the old European fleets with new fleets whilst contributing to reducing CO2 emissions within the EU transport sector.”
Pierre Aubouin, head of the infrastructure and mobility section of the investment department of Banque des Territoires, said SETEF provides a significant step “contributing towards the modal shift from carbon-intensive road transport towards safer, more sustainable and environmentally friendly modes of freight transportation such as rail and fluvial transport”.
Fabrice Walewski, co-CEO of Touax Group, said: “Freight railcar and river barge investments have been part of our core businesses for more than 170 years. These investments will be added to our €1.3bn of transportation assets already under our operational management and we are very pleased to bring all our expertise to SETEF and their very well-known LPs.”
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