Cape Town-based Infra Impact Investment Managers, a firm that invests in privately held companies, has raised more than R2-billion for its infrastructure fund.

The Infra Impact Mid-Market Infrastructure Fund 1 exceeded its R1.5-billion fundraising target by more than R500-million. The money raised will be used to invest in mid-market infrastructure businesses, including in the telecommunications and energy sectors.

“The businesses the fund invests in own real assets that provide essential services and have value-creation potential,” the company said in a statement on Thursday.

“The fund is deployed in line with the teams historically successful mid-market, value-add infrastructure strategy concentrating on water, waste, energy, telecoms and related sectors.”

It said trillions of rand of investment are required to develop sustainable infrastructure in South Africa.

Mark van Wyk, co-founder and co-managing partner of Infra Impact Investment Managers, said in the statement: “We are very pleased by the strong support shown by our investors, who share our vision of universal access to sustainable and reliable infrastructure services.”

Fourteen investors are backing the new fund and include local “funds of funds”, university foundations, insurers, banks, pension funds and an international development finance institution, which hasn’t been named.