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Basepoint Acquires UK's Infrastructure & Projects Fund (IPF) in GBP618 Million Deal

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  //business-finance.news-articles.net/content/202 .. re-projects-fund-ipf-in-gbp618-million-deal.html
  Published in Business and Finance on Monday, December 29th 2025 at 19:00 GMT by reuters.com

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UK’s Infrastructure & Projects Fund (IPF) to be Acquired by Basepoint in £618 Million Deal

The UK’s Infrastructure & Projects Fund (IPF), a significant investor in public sector infrastructure projects, is set to be acquired by a consortium led by Basepoint Investment Partners for approximately £618 million (€733 million). The deal, announced on December 29th, marks a substantial shift in the landscape of UK infrastructure investment and signals ongoing interest in assets supporting government initiatives.

What is IPF? A Background

The Infrastructure & Projects Fund (IPF) was established in 2013 as part of the UK government’s drive to attract private capital into public sector projects. Managed by Amberstone, IPF operates a "contract-for-difference" (CfD) model. This means it provides financing for infrastructure projects – spanning areas like schools, hospitals, roads, and renewable energy - and receives payments from the government based on the project's performance against pre-agreed targets. This structure aims to reduce risk for private investors while allowing the government to leverage their expertise and capital. IPF has amassed a portfolio of approximately 30 projects with a total value exceeding £2 billion, demonstrating its significant role in supporting essential public services. The fund’s success hinged on consistent government payments tied to project milestones and performance - a factor that makes it attractive to investors seeking stable returns.

Basepoint's Acquisition: Details & Rationale

The acquiring entity is a consortium led by Basepoint Investment Partners, backed by institutional investors including Ares Management Corporation. The deal values IPF at approximately £618 million, representing a premium over its previous valuation. While the exact terms of the agreement remain subject to regulatory approvals and customary closing conditions, it's expected to finalize in the first half of 2025.

Basepoint’s rationale for acquiring IPF is multifaceted. Firstly, IPF’s existing portfolio offers immediate exposure to a diversified range of infrastructure assets already operational and generating revenue – a key advantage in a market often dominated by project development risk. Secondly, Basepoint sees significant potential to enhance IPF's performance through active asset management and optimization strategies. They plan to leverage their experience in the sector to improve efficiency, identify new revenue streams, and potentially refinance existing debt structures. This aligns with Basepoint’s broader investment strategy of acquiring mature infrastructure assets with opportunities for value creation.

"This transaction represents a compelling opportunity to acquire a high-quality portfolio of UK public sector infrastructure projects," stated Neil Graham, Partner at Basepoint Investment Partners, in the official announcement. "We believe IPF's strong track record and diversified asset base provide a solid foundation for future growth and enhanced returns."

Impact on Existing Management & Future Strategy

Importantly, Amberstone will continue to manage the fund’s existing portfolio under the new ownership structure. This continuity is intended to ensure minimal disruption to ongoing projects and maintain the established relationships with government agencies and project stakeholders. However, Basepoint will implement its own strategic oversight and introduce operational improvements over time. While specific details regarding management changes haven't been released, it’s likely that Basepoint will integrate IPF into its existing infrastructure investment platform.

Broader Context: Infrastructure Investment in the UK & Global Trends

This acquisition takes place within a broader context of increasing global interest in infrastructure assets. Governments worldwide are increasingly recognizing the need for significant investment in critical infrastructure to support economic growth, address climate change, and improve quality of life. The post-pandemic environment has further amplified these needs, with supply chain disruptions and increased demand highlighting vulnerabilities in existing systems.

The UK government's focus on "levelling up" – reducing regional inequalities – is also driving a surge in public sector infrastructure projects. This creates opportunities for private investment, but it also places pressure on the government to ensure value for money and manage risks effectively. The CfD model employed by IPF exemplifies this approach, aiming to balance private incentives with public accountability.

The acquisition itself reflects a broader trend of consolidation within the infrastructure investment space. Larger players are seeking to acquire smaller funds or portfolios to achieve economies of scale, diversify their asset base, and enhance operational efficiencies. Ares Management’s involvement underscores the global appeal of UK infrastructure assets, attracting significant capital from international investors.

Potential Challenges & Considerations

While the acquisition presents numerous opportunities, potential challenges remain. Changes in government policy regarding CfD agreements could impact IPF's revenue streams. Economic uncertainty and inflationary pressures also pose risks to project costs and performance. Basepoint’s success will depend on its ability to navigate these challenges effectively and deliver on its promises of enhanced asset management and value creation. Furthermore, maintaining strong relationships with the UK government and ensuring continued operational efficiency will be crucial for long-term success.

The deal highlights the ongoing appetite for infrastructure investment in the UK, even amidst economic uncertainties, and signals a new chapter for IPF under Basepoint’s stewardship.