Singapore-based Seraya Partners has closed an $800 million fund dedicated to digital infrastructure and energy transition investments.
The funding round is the private equity company's first, and surpassed its $750m target.
The mid-market fund will be focused on Asia and will be used to invest in the region's energy transition and digital infrastructure.
Half of the fund has already been dedicated to three companies: data center operator Empyrion DC, offshore wind vessel operator Cyan Renewables, and solar, wind, and energy storage company Astrid Renew.
Empyrion DC broke ground on its first data center in Gangnam, Seoul, South Korea, in June 2023. The data center company, wholly owned by funds managed by Seraya Partners, previously acquired a stake in Dodid Pte. Ltd. and its 12.5MW data center in Singapore alongside Malaysian conglomerate YTL in late 2021.
The fund has been contributed to by a variety of investors, including sovereign wealth funds, pension funds, insurers, and family offices across North America, Europe, and Asia Pacific, including the Asian Infrastructure Investment Bank (AIIB), Alberta Investment Management Company (AIMCo), and funds managed by BlackRock.
“Asia’s rapidly expanding cities, intensifying climate change, and aging infrastructure have created a pressing need to address the region’s burgeoning trillion-dollar infrastructure gap," said James Chern, managing partner and CIO of Seraya Partners.
"Energy transition and digital infrastructure will be the twin engines to bridge this gap and lead us toward net-zero ambitions. We are deeply grateful for the support and confidence our investors have placed in us to address the infrastructure gap. We are committed to creating value for our investors while building a more sustainable future for Asia."
The Asian Development Bank estimates that $1.7 trillion will need to be invested annually in infrastructure in Asia through 2030 in order to meet demand. Seraya will continue to identify new investment opportunities in the market.
“AIIB’s investment in Seraya Partners shows its commitment to support Asian infrastructure asset managers. It is well-aligned with AIIB's mission of financing infrastructure for tomorrow. This investment demonstrates AIIB’s commitment to reducing bottlenecks in the infrastructure supply chain through innovative technologies such as offshore wind farm vessels.” said Dong-ik Lee, AIIB director general banking department (Region 1).
In February of this year, Kotak Alternate Assets closed its first Indian data center fund at $590m. In July, Singapore-based GIC announced it was looking to raise around $700m for the development of a data center outside Seoul, South Korea.
