Ancala wins Fund Performance of the Year and recognition for exit of Dragon LNG at the IJInvestor Awards 2024

The IJInvestor Awards celebrate the best fund performance and M&A activity in the energy and infrastructure sector. The awards are decided by an independent panel of judges comprised of industry experts. The judging period for the awards covers 1 September 2023 to 31 July 2024.

Fund Performance of the Year is presented to an energy or infrastructure fund with the most outstanding performance during the judging period.

The judges chose Ancala Infrastructure Fund I having been “blown away by its exits multiples in a challenging M&A environment”. The judges noted that Ancala has “delivered a stellar performance across all aspects of fund management including raising capital, deploying capital, creating value, realising investments and delivering yield”.

The fund, closed in 2016, has now exited six out of 10 investments. To date, it has performed significantly above Ancala’s targeted returns.

Within a subdued M&A infrastructure market where transaction volumes have fallen to their lowest in five years, Ancala delivered four successful exits from Fund I between 2023 and 2024. The latest exit of Dragon LNG was a standout achievement, delivering strong returns from a sector that has been impacted by depressed demand.

The fund’s performance is testament to Ancala’s ability to create value within its portfolio companies. Its proactive approach is delivered by its dedicated asset management team and industry partners, former CEOs and chairs of major infrastructure organisations. On average, its portfolio companies have grown revenues by more than 65% since Ancala invested.¹

Ancala’s exit from Dragon LNG was named Oil & Gas Deal of the Year. The award recognises the most outstanding acquisition or disposal by a financial investor of an oil & gas asset.

Dragon LNG is a liquefied natural gas (LNG) regasification terminal located in Milford Haven, Wales. It is one of only three LNG terminals in the UK.

Ancala was proactive in identifying the opportunity to invest in Dragon LNG, adding value to the asset, including delivering significant decarbonisation initiatives, and delivering a successful exit in a subdued M&A market which outperformed the investment case.

The judges commended Ancala, stating: “The transaction resulted in a very good financial outcome for Ancala investors in a challenging deal environment. There was clear demonstration of asset management value creation during the 5-year ownership by Ancala.”

Ancala’s proactive asset management approach enabled Dragon LNG to deliver a multi-million-pound investment programme into the terminal, to commission a reliquefaction plant to afford its customers unmatched flexibility for sending out gas to the grid, and to progress significant decarbonisation initiatives. This includes launching a 10MW solar farm, progressing plans for a wind farm and brokering a heat exchange agreement with the neighbouring power plant, owned by RWE.

The Ancala team is thrilled to celebrate winning two leading industry awards which further evidence the firm’s proven approach and success.

Interested to find out more about Ancala’s award-winning approach? Register your interest, here.

Find out more about the IJInvestor 2024 awards, here.

References

1 – Data as at 31 December 2023