Global investment manager Barings has raised $630m (€610m) for its debut OECD-focused infrastructure debt fund.
Barings said the fundraising for the Target Yield Infrastructure Debt Fund and its associated vehicles exceeded the manager’s $500m high-end target.
The fund was backed by a global investor base including a mix of public and private pension funds and insurers, Barings said, adding that the fund will invest in “below investment grade debt assets” across social and regulated infrastructure, renewables, transportation and digital infrastructure primarily in North America and Europe.
Pieter Welman, managing director and head of the global infrastructure business at Barings, said: “Barings global infrastructure aims to offer investors exposure to a diversified, uncorrelated global strategy with appropriate risk and return.
“We believe that the asset class offers tangible investment opportunities that have an immediate positive impact on communities across the globe and contribute to a sustainable future.”
Mark Ackerman, managing director and co-portfolio manager for Barings Target Yield Infrastructure Debt Fund, said: “We have been making investments in infrastructure debt on behalf of our parent company for years.
“We view this inaugural fund as a natural evolution of our historical infrastructure debt strategy, focused on the same sectors and types of credits.”
Orhan Sarayli, a managing director who serves as the lead originator for infrastructure project finance debt transactions, said: “We continue to find investment opportunities in below investment grade infrastructure debt as a compelling addition to our investors’ asset allocation strategies.
“We appreciate their confidence in our team and share their enthusiasm around the opportunity set that exists in this space.”
Barings has been investing in infrastructure debt for over 30 years and established a standalone group focusing on the asset class in 2013.
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