Key Takeaways
- Sector: Digital Infrastructure, Energy Infrastructure & Renewables, Environmental Infrastructure & Services, Transport Infrastructure & Services (traditional).
- Geography: Spain.
Analysis
Arcano Partners, based in Madrid (Spain) has announced the launch of its third sustainable infrastructure fund, Arcano Earth Fund III FCR, targeting €300 million. The new vehicle will focus on digital infrastructure, energy transition, and transport & logistics, allocating 50% to co-investments and 50% to primary and secondary fund commitments. The fund is expected to deliver net returns exceeding 10% for institutional and private banking investors.
Building on the success of previous funds launched in 2019 and 2021, Arcano’s Sustainable Infrastructure platform has deployed over €900 million across 350 projects in 25+ countries. Investments have included electric ferries in Norway and leading data center platforms in the U.S. The new fund boosts the co-investment allocation to 50%, compared to 30% in Earth Fund II, offering investors broader exposure and increased return potential from direct assets.
This launch adds momentum to Spain’s growing sustainable infrastructure investment landscape. In 2024, AltamarCAM launched its second renewable infrastructure vehicle, Altamar Energy Transition Fund II, with a €600 million target and a mandate focused on battery storage, wind repowering, and distributed solar projects across Southern Europe.
Alantra Asset Management has also been active in this space, closing its Noria Infrastructure Fund at €300 million to invest in water, waste, and circular economy infrastructure across Iberia. Meanwhile, Sabadell Asset Management launched a blended finance fund aimed at sustainable public-private projects in Spanish municipalities, offering senior and mezzanine capital for local green infrastructure.
These strategies reflect a surge in investor appetite for stable, inflation-linked returns in essential assets such as energy, logistics, connectivity, and mobility — all sectors undergoing structural transformation. Spain has emerged as a key jurisdiction, thanks to its strong renewable base, EU-aligned regulatory framework, and infrastructure upgrade needs.
According to Arcano, sustainable infrastructure already accounts for 8% of global alternative fundraising, with $100 billion raised in 2024. Fund manager Pierre Sáenz Lafourcade emphasized the resilience of infrastructure strategies during economic volatility, while Carlos Ruiz de Gauna highlighted the opportunity to capture value early as demand accelerates.
With €12.5 billion in assets advised across six verticals, Arcano continues to consolidate its position as a European leader in ESG-driven asset management and a key player in Spain’s fast-expanding infrastructure ecosystem.