Federated Hermes, a global leader in active, responsible investment management, today announces the completion of a successful GP-led secondary transaction in the Federated Hermes Diversified Infrastructure Fund.
Federated Hermes Infrastructure specialises in providing institutional investors with cost-effective access to high-quality infrastructure equity investments across the UK, Europe and other OECD jurisdictions. Since inception in 2011, the business has invested total capital of $5.5bn on behalf of UK pension funds and global institutions.1
The Federated Hermes Diversified Infrastructure Fund (FHDIF) was established in 2023 with a single diversified core/core+ strategy seeded by seven investments comprising a diversified portfolio of leading infrastructure companies across the UK and Europe with associated board positions and governance rights. The portfolio seeks to deliver an attractive yield and defensive characteristics underpinned by long term contractual structures, regulated revenues and inflation protection.
As anticipated at the time FHDIF was established, a liquidity offering supported by Campbell Lutyens was launched in May 2024. The transaction was successfully concluded in October 2024, with one of the largest global infrastructure investors acquiring a stake of approximately 20%.
Establishing FHDIF in 2023 represented an important milestone for the Federated Hermes Infrastructure franchise, with the creation of an attractive portfolio of businesses under a modified structure designed to satisfy the current and future needs of our clients. Successful completion of this secondary transaction delivers on commitments made to our investors that investing in FHDIF would enhance the liquidity options of those who require it and allows us to welcome a new investor with significant global infrastructure experience, representing a strong endorsement of our team’s investment strategy and track record. We would like to thank the Campbell Lutyens team for their support and guidance.
Tom Bolton, Managing Director, Federated Hermes Infrastructure
We are delighted to have acted as advisor to Federated Hermes on this significant and successful transaction.
David Perrin, Partner, Head of Infrastructure Secondaries, Campbell Lutyens
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1 As at 30 September 2024
