The country's first listed infrastructure fund, HICL, is understood to be mulling a tilt for a portfolio of socially driven projects.
The Investors in the Community (IIC) fund, which includes schools in Leeds and the regeneration of housing in Manchester's deprived Miles Platting district, is understood to have been put on the block for around £100m. KPMG is thought to be orchestrating a sale process for the fund's investors, such as the London Pension Fund Authority and Mill Group, the latter of which also manages IIC.
The fund, set up in 2004, has 11 investments but was only due to have a 10-year lifespan. The current investors in IIC are looking to cash in by agreeing to sell the portfolio by the end of the year in what is known as the secondary market of mature infrastructure assets.
The Government has been keen for these type of funds to invest in upcoming projects such as roads, bridges and sewage works to help kick-start the economy. However, these 'primary' deals have been slow to materialise, so there are more opportunities in trading existing assets and portfolios.
HICL is currently considered one of the favourites to buy IIC.