There have been a number of cases of firms buying into the infrastructure investment space – highlighting the popularity of this asset class.

Vontobel, the Switzerland-based wealth and investment manager, has completed its purchase of a “significant minority stake” in Ancala Partners, an infrastructure investment business based in London.

The acquisition, originally announced in February, came at a time when a number of firms, most notably BlackRock, bought infrastructure firms in order to tap into the growth potential of this asset class. (See stories here, here and here.)

The infracture business will “enable clients to benefit from the potential for diversification supported by low correlation to GDP and other major asset classes, as well as attractive risk-adjusted returns,” Vontobel said. 

Ancala, founded in 2010, has more than €4.1 billion ($4.53 billion) in AuM and manages 18 assets operating in essential infrastructure sectors including renewables and energy transition, transport and utilities. The firm will be run independently on a day-to-day basis by its management team, led by managing partner Spence Clunie, and will retain independence over its investment and governance processes, Vontobel said.

Vontobel financed the transaction out of its own funds, which it said "comfortably" exceeded its target Common Equity Tier 1-ratio of 12 per cent.