20 October 2022  |  Frankfurt

DIF partners with Deutsche Bahn on public transport concession in Germany

DIF Capital Partners is pleased to announce that it has signed a sale and lease back agreement regarding the acquisition of 29 new-build and electrical multiple-unit trains with DB Regio AG, a subsidiary of Deutsche Bahn AG. The investment will be made through DIF Infrastructure VI fund. MEAG acted as exclusive arranger for the senior debt financing.

DB Regio will sell 29 multiple-unit trains (Coradia Stream HC series), manufactured by Alstom Transport Deutschland, to DIF and lease them via an initial 15-year term to operate the “Kinzigtal” concession. This will connect the German cities Frankfurt am Main, Hanau, Fulda, Bebra as well as Wächtersbach.

Gijs Voskuyl, Partner and Head of Investments for the DIF VI strategy : “DIF is pleased to partner with Deutsche Bahn and our project lender MEAG on this project. Our investment is a component of a wider plan to extend and modernise the public transport services around Frankfurt. The aim is to make it more attractive, by contributing to the customer satisfaction as well as to increase sustainability of – especially – commuter transport from the suburbs to the city center.”

Benjamin Hemming, Head of Infrastructure Debt at MEAG, adds: “We are very pleased to make an important contribution to the modernisation of public transport in Germany with our exclusive debt arrangement for the Kinzigtal network. The new trains which will operate on the line will not only make commuting by train more convenient, but will also contribute to reducing emissions. With this innovative private placement we enable our institutional clients to participate in a long-term and sustainable financing at attractive terms.”

DIF was advised by Herbert Smith Freehills (legal), railistics (technical and commercial), Mazars (model audit and tax), ReedSmith and Loyens & Loeff (tax), Euro transaction Solutions (insurance) and Northrail (transaction structuring as well as long term asset management provider).

(Picture: © Alstom Advanced Design & Styling)

About DIF Capital Partners

DIF Capital Partners is a leading global independent investment manager, with ca. EUR 14 billion in assets under management across eleven closed-end infrastructure funds and several co-investment vehicles. DIF invests in infrastructure companies and assets located primarily in Europe, the Americas, and Australia through two complementary strategies:

  • Traditional DIF funds, of which DIF Infrastructure VII is the latest vintage, target core infrastructure equity investments with long-term contracted or regulated income streams including public-private partnerships, concessions, utilities, and energy transition projects (incl. renewable energy).
  • DIF CIF funds, of which DIF CIF III is the latest vintage, target equity investments in small to mid-sized core-plus infrastructure companies in the telecom, energy transition, and transportation sectors.

DIF Capital Partners has a team of over 200 professionals, based in eleven offices located in Amsterdam (Schiphol), Frankfurt, Helsinki, London, Luxembourg, Madrid, New York, Paris, Santiago, Sydney, and Toronto. For more information please visit www.dif.eu.

Contact DIF: Diederik Heinink, d.heinink@dif.eu

© Alstom Advanced Design & Styling
17 October 2022  |  

Getting up to net-zero speed

When DIF became a signatory to the Net Zero Asset Managers (“NZAM”) initiative in 2021, we put a dot on the horizon. But it is clear we must put our foot on the accelerator if we – and the wider infrastructure sector – are to reach that horizon before too much damage is done to our planet or our portfolio investments.

The race to transition to a low carbon economy has never felt more urgent. Over the last five years, 21% of our portfolio investments surveyed on our bespoke ESG engagement process ‘ESG Path’ responded they have been affected by extreme weather events, such as wildfires and flooding although financial impact of such events has not yet been material.

The world’s dependence on Russian oil and gas in recent months has further heightened the need to develop a diversified set of alternative energy sources and capabilities for resilient energy system of the future.

But the net-zero transition doesn’t mean flipping a green switch or investing only in companies that are already green. It means bringing significant capital and deep operational expertise to bear on infrastructure that can form the basis of a Net Zero future.

What is DIF doing?

One year on from our net zero commitment, we are putting a strong focus on pragmatism, transparency and “doing what we say we are going to do”.

We focus on delivering targets, tools, strategy and planning for each of our portfolio investments that will take us as rapidly as possible to that dot on the horizon.

Providing targets and tools

We are not just setting targets for the distant future of 2050. This month, as part of our NZAM commitments, we have published an interim target for 70% of our assets under management to be aligning with net zero by 2030.

This means that in just over seven years, the vast majority of our portfolio companies will have set their own decarbonisation path to Net Zero, will disclose GHG emissions and have clear allocated management responsibility for their reduction pathways.

This is no easy task, so DIF is providing specialist tools and guidance required. For example, there was a 150% increase in the portfolio companies using our greenhouse gas emissions tool to calculate their carbon footprint last year.

Evolving our investment strategy

To reach our Net Zero horizon, we are evolving a broader approach to sustainable infrastructure that invests not only in real assets, but also in those companies along the value chain accelerating the transition to a net zero and more connected economy.

Our new DIF VII and CIF III funds are good examples of this, as they focus on sectors such as energy transition and digitisation.

We see significant amounts of institutional capital flow into those sectors, demonstrating a maturity that is key to achieving the scale and pace needed to build a net zero economy.

Preparing for the rocky road ahead

The next step after setting the interim target for 2030 is to develop Net Zero business plans with each of our portfolio companies.

These business plans must be based on science and must have both management and shareholder support in order to be credible. These are challenges the entire infrastructure sector must confront.

It may not be a smooth road, but we cannot dally. As the impacts of climate change continue to grow, we must get up to speed quickly to manage the risks and seize the opportunities it presents.

Frank Siblesz, Head of ESG

10 October 2022  |  

DIF publishes ESG Annual Report 2022 “Accelerating the transition”

Today, DIF Capital Partners publishes its 2022 ESG report “Accelerating the transition” reflecting on our ESG activities and achievements with a special focus on how our new investment funds accelerate the energy transition. Alongside this publication, we are proud to report a five star rating under the new UNPRI framework, a reward for our strong commitment to ESG throughout the firm.

With the launch of our new DIF VII and CIF III funds, we started to develop a broader approach to sustainable infrastructure that invests not only in real assets, but also in those companies along the value chain accelerating the transition to a net zero and more connected economy.

From electric vehicle charging points to fiber networks, the transition requires new infrastructure across the world and significant amounts of institutional capital to reach the maturity, scale and scope required.

We made notable new investments that are accelerating this transition with their products and services. Some examples are Plugit, one of the largest EV charging infrastructure companies in Finland, ib vogt, a global solar developer across 40 countries, and Bernhard, an energy-as-a-service provider in the US.

All new funds were categorised as ‘Article 8’ under the EU’s new Sustainable Finance Disclosure Regulation (SFDR), as they are promoting specific environmental and social objectives. For example, the Dutch Climate Action Fund, a partnership with NN Group, is driving the energy transition and contribute to the Dutch GHG reduction target through a focused investment strategy.

In 2021, we also joined the Net Zero Asset Managers initiative and committed our firm to being a net zero investor by 2050 or sooner. To start with, we have set a target of 70% of our AUM to be aligning with net zero by 2030, we are collecting our portfolio’s carbon footprint and have started developing investment-by-investment decarbonisation plans.

Core to our business is an appreciation of the strong connection between our investments, their users and our own employees. That’s why we pride ourselves in taking care of our own people and communities, in “walking the talk” on the environment and promoting diversity and equality of opportunity.

More information on our ESG activities and achievements: download the 2022 report.

 

About DIF Capital Partners

DIF Capital Partners is a leading global independent investment manager, with ca. EUR 14 billion in assets under management across eleven closed-end infrastructure funds and several co-investment vehicles. DIF invests in infrastructure companies and assets located primarily in Europe, the Americas, and Australia through two complementary strategies:

  • DIF CIF funds, of which DIF CIF III is the latest vintage, target equity investments in small to mid-sized core-plus infrastructure companies in the telecom, energy transition, and transportation sectors.
  • Traditional DIF funds, of which DIF Infrastructure VII is the latest vintage, target core and build-to-core infrastructure equity investments with long-term contracted or regulated income streams including public-private partnerships, concessions, utilities, and energy transition projects (incl. renewable energy).

DIF Capital Partners has a team of over 200 professionals, based in eleven offices located in Amsterdam (Schiphol), Frankfurt, Helsinki, London, Luxembourg, Madrid, New York, Paris, Santiago, Sydney, and Toronto. For more information please visit www.dif.eu.

Contact: Diederik Heinink, d.heinink@dif.eu.

 

7 October 2022  |  

Vincent Liu and Kanan Joshi on (digital) infrastructure opportunities in North America | Infrastructure Investor

Managing director Vincent Liu and head of digital infrastructure Kanan Joshi of DIF Capital Partners in North America spoke to Infrastructure Investor about market opportunities in the region.

They elaborated on how both the energy transition as well as the rapid rise and need for digital infrastructure offer lots of room for further growth.

Moreover, Vincent commented on how DIF is also looking beyond traditional renewable energy.

“For example, we are increasingly pursuing opportunities within the ‘energy-as-a-service’ segment, where companies help improve energy efficiency through long-dated concession style contracts. Energy storage, EV-charging and e-fuels are also a part of our strategy.”

Read the whole piece here.

5 October 2022  |  Paris

DIF Capital Partners invests in leading global renewable energy platform Qair

Qair, a fast growing renewable energy platform company, and DIF Capital Partners, a leading global independent investment manager, are pleased to announce that they have signed a partnership agreement whereby DIF, through DIF Infrastructure VII, will invest in the company to accelerate its growth and portfolio build out.

Qair is an independent power producer that develops, owns, and operates multi-technology renewable energy projects. The platform is focused on a wide range of technologies including onshore and offshore wind, utility scale solar, energy from waste, hydroelectricity, (battery) storage, hydrogen production, as well as tidal energy. Qair is a global player with a presence in 20 countries. The majority of its activities are based in France, Poland, Germany, Italy, Spain and Brazil. The company has 550 employees and is headquartered in Paris, France.

Qair has an operational portfolio of c. 1 GW, which is mainly comprised of (onshore) wind (c. 75%) and solar projects, as well as a development pipeline of 25 GW. The company benefits from strong development capabilities and foresees to add around 4 GW of renewable projects over the next five years.

Louis Blanchard, CEO of Qair: “With my partners Jean Marc Bouchet and RGreen, and the broader Qair team, we are happy to welcome DIF Capital Partners and join forces to pursue the development of our group’s strategy. We are confident that with the entrepreneurial spirit that drives us both, DIF will offer us the best support in our mission to accelerate the energy transition, especially within the current complex energy market.”

Gijs Voskuyl, Partner at DIF and Head of Investments for DIF Infrastructure VII adds: “DIF is delighted to partner with Qair and its management team and support them in their next phase of growth. We believe the company has built up an excellent track record and an impressive pipeline across a wide range of renewable energy sectors and countries and is very well positioned to play a leading role in the continuous decarbonization of the global economy”.

Qair was advised by August Debouzy, PSP Avocats, NM Advisory, 8 Advisory, PwC, Niddam-Drouas and Drooms. DIF was advised by Astris Finance, KPMG, H3P, Clifford Chance, UL, DNV, Baringa and Marsh.

About DIF Capital Partners

DIF Capital Partners is a leading global independent investment manager, with ca. EUR 14 billion in assets under management across eleven closed-end infrastructure funds and several co-investment vehicles. DIF invests in infrastructure companies and assets located primarily in Europe, the Americas, and Australia through two complementary strategies:

  • DIF CIF funds, of which DIF CIF III is the latest vintage, target equity investments in small to mid-sized core-plus infrastructure companies in the telecom, energy transition, and transportation sectors.
  • Traditional DIF funds, of which DIF Infrastructure VII is the latest vintage, target core and build-to-core infrastructure equity investments with long-term contracted or regulated income streams including public-private partnerships, concessions, utilities, and energy transition projects (incl. renewable energy).

DIF Capital Partners has a team of over 200 professionals, based in eleven offices located in Amsterdam (Schiphol), Frankfurt, Helsinki, London, Luxembourg, Madrid, New York, Paris, Santiago, Sydney, and Toronto. For more information please visit www.dif.eu.

Contact: Thijs Verburg, t.verburg@dif.eu.