#USA #New York #Ridgewood Infrastructure #Fund II #Water Utility

Ridgewood Infrastructure Secures $1.2 Billion for Fund II

On January 15, 2025, Ridgewood Infrastructure, a premier investor focusing on essential infrastructure within the U.S. lower middle market, made headlines by announcing the successful final close of its second fund, Ridgewood Water Strategic Infrastructure Fund II LP (abbreviated as Fund II). This fund achieved capital commitments amounting to $1.2 billion, distinctly surpassing its initial target of $1 billion.

A Diverse Portfolio of Investors

Fund II has garnered attention due to its impressive backing by a varied group of institutional investors. This includes a mix of returning partners and new players such as public and corporate pension funds, insurance firms, endowment funds, and asset managers hailing from North America, Europe, Asia, and the Middle East. This diverse support base underscores the investor's confidence in Ridgewood's strategic direction and ability to generate meaningful returns in essential infrastructure.

Focus on Critical Infrastructure

Continuing with its established strategy, Fund II is dedicated to investments in essential infrastructure businesses and assets. This includes critical services related to water, energy, transportation, and utilities—sectors that are increasingly vital as global demands rise. Ridgewood's approach emphasizes operational value creation, aiming to scale, professionalize, and optimize the strategic positioning of their investments.

Ross Posner, the Managing Partner of Ridgewood Infrastructure, expressed gratitude for the continued support from existing partners and the optimism of welcoming new limited partners (LPs) from around the globe. He remarked, "This is a meaningful milestone for our firm, and we are deeply appreciative of the trust our partners continue to place in our team and strategy."

Michael Albrecht, also a Managing Partner, commented on the firm’s commitment to delivering consistent value for investors and the communities served by their portfolio companies.

Notable Investments and Successes

Fund II is already making strides with several significant investments, among them the Prospect Lake Clean Water Center—a groundbreaking project that stands as the third-largest water public-private partnership in U.S. history. Under a 30-year concession agreement, this facility is set to provide approximately 80% of Fort Lauderdale's fresh water.

Ridgewood Infrastructure has also seen noteworthy exits from its inaugural fund, Fund I. In October, the firm successfully sold its controlling interest in the Vista Ridge Water Pipeline—recognized as America's largest water public-private partnership. This pipeline is crucial in supplying around 20% of San Antonio's fresh water, also under a 30-year agreement. Furthermore, Fund I recently concluded the sale of its interest in SiEnergy, which has been noted as one of the fastest-growing regulated utilities in the nation.

A Vision for Future Growth

Matthew Swanson, Founding Partner of Ridgewood Infrastructure, highlighted the combined efforts and expertise of the team as a critical driver behind these achievements. He stated, "Our accomplishments reflect the exceptional capabilities of our team and the strength of the Ridgewood platform. We look forward to building upon this strong foundation of success in the years to come."

Eaton Partners, affiliated with Stifel, served as the placement agent for this successful fund, while Vinson & Elkins LLP provided legal counsel.

About Ridgewood Infrastructure

Ridgewood Infrastructure is recognized as a prominent player in the U.S. lower middle market of infrastructure investment, focusing on sectors such as water, energy, transportation, and utilities. Their committed strategy and operational expertise position them uniquely to tap into growing market opportunities and drive impactful investments.

For more information about Ridgewood Infrastructure and their initiatives, visit www.ridgewoodinfrastructure.com.