The Fund Performance of the Year award in Europe went to Ancala, with judges blown away by its exit multiples in a challenging M&A environment.  

The fund manager was singled out for the performance of its Ancala Fund I, which has delivered a 14.7% gross IRR and an 12% annualised cash yield to 30 June 2024.  

Despite the judging period being a “notoriously challenging time” to raise capital and then deploy it, judges said the fund manager delivered a stellar performance across all aspects of fund management including raising capital, deploying capital, creating value, realising investments and delivering yield. 

Indeed, as one judge said: “I agree that successful exits through a continuation vehicle and through the sale of Dragon was notable in the subdued M&A environment. It is particularly impressive that the exiting investors have generated a 13%+ return, in the current market.” 

Ancala Fund I, which reached final close in 2017 at £400 million, was the fund manager’s first commingled fund.  

The submission said: “Between 2023 and 2024, the fund has sold four assets across energy, utilities and renewables at attractive valuations. For its realised investments, the fund has achieved a gross money multiple of 1.87x and IRR of 20.1%. The fund has now made gross distributions of 1.37x of the invested capital. 

“Ancala secured most of the investments on a bilateral basis. Each investment presented its own unique complexities and growth opportunities. For example: 

• Green Highland Renewables, a hydropower business, was a platform investment which required capital to transform from a contractor building for others to an owner and operator, and significantly expanded its generational capacity
• Liverpool Airport: Ancala invested alongside Peel Group. The vendor trusted Ancala as they had first-hand experience of our ability to create value through our joint venture, Leep Utilities. In 2024, the airport is delivering record profitability and customer satisfaction levels.
• SAGE system: Ancala acquired the Scottish Area Gas Evacuation System as part of a complex carve-out from global energy firm Apache. The system connects to 46 North Sea fields through nine primary hubs and transports gas through to the SAGE terminal at St Fergus, north of Aberdeen. Demonstrating our ability to execute the complicated carveout was critical to securing the opportunity.”

The first fund also secured a significant exit from Dragon LNG, selling its 50% stake to VTTI. The submission said: “Ancala was proactive in identifying the opportunity to invest in Dragon, managing the asset, including delivering significant decarbonisation initiatives, and delivering a successful exit in a subdued M&A market which outperformed the investment case. It marks Ancala’s sixth exit from its first flagship infrastructure fund which continues to outperform.”