The Government has appointed M&G Investments to manage a portion of its £400 million Digital Infrastructure Investment Fund, which is unlocking over £1 billion to kick-start better broadband connections across the country. Investing the funds will be M&G’s Infracapital business, which has partnered with Cameron Barney, a financier of infrastructure and technology-centric companies, and M&G’s infrastructure debt team.
Infracapital, which invests in unlisted equity infrastructure projects and companies, will jointly launch a platform, called Digital Infrastructure Investment Partners (DIIP), to invest in full fibre broadband infrastructure in the UK with Cameron Barney. Drawing on decades of experience in the telecoms sector in the UK and Europe, the platform will invest to improve internet connectivity throughout the country.
Most recently, through Infracapital’s investment in Gigaclear, a company founded in 2010, fibre broadband has already been rolled out to over 40,000 homes and businesses in rural communities in the South West, South East and Midlands.
M&G’s infrastructure debt business, which manages over £10 billion* of debt investments in public and private telecoms and cable companies, will make funds available to businesses in order to roll out new networks across the UK.
Ed Clarke, Co-Founder and Director, Infracapital, says: “We are delighted to be working with HM Treasury on this hugely important initiative to improve full fibre connectivity in the UK. The widespread availability of high-speed broadband is an essential ingredient in driving the competitiveness of the UK and offers an attractive investment opportunity for infrastructure investors, many of whom are pension funds. Infracapital has already made significant investments in the sector in the UK and Europe and we look forward to continuing to be at the forefront of this fast developing sector.”
Brian Robertson, Co-Founder and Partner, Cameron Barney, says: “Access to capital for existing and new entrant providers of broadband infrastructure in the UK has been a material constraint in the roll-out of fibre networks to satisfy existing customer demand and underpin a faster-growing digital economy. The launch of the DIIP today, with support from HM Treasury, is a significant and welcome step towards supporting the business plans and ambitions of many companies which are extending the reach of fibre infrastructure in the UK.”
John Mayhew, head of infrastructure debt, M&G Investments, says: “We are pleased to be working with HM Treasury in order to play our part in delivering world class, high-speed broadband infrastructure in the UK. This approach ensures that Britain is ready for the future and brings benefits to families and businesses across the country who rely on fast and greater connectivity, as well as ordinary savers through the returns generated for their pension funds.”
We are delighted to be working with HM Treasury on this hugely important initiative to improve full fibre connectivity in the UK. The widespread availability of high-speed broadband is an essential ingredient in driving the competitiveness of the UK and offers an attractive investment opportunity for infrastructure investors, many of whom are pension funds. Infracapital has already made significant investments in the sector in the UK and Europe and we look forward to continuing to be at the forefront of this fast developing sector.
Ed Clarke,
Co-Founder and Director, Infracapital