BNP Paribas Asset Management Alts has secured around €1.2bn in capital commitments for its second European junior infrastructure debt fund at its final close, exceeding its original fundraising target.
As previously reported, European Junior Infrastructure Debt II, which was launched in August 2024 had a €1bn hard cap, and aimed to raise between €500m and €750m.
The fund, which is backed by new and returning European and Asian investors, seeks to provide defensive, stable income from senior and junior secured fixed- and floating-rate debt.
The manager said the fund, which targets the renewable energy, utilities, digital infrastructure, clean mobility and social infrastructure sectors, has completed close to ten investments to date, it added.
Karen Azoulay, head of real assets at BNP Paribas Asset Management Alts, said: “Having already made a number of investments across the renewables, energy transition, clean mobility, digital infra and utilities sectors, we remain focused on building a high-quality portfolio that aims to deliver both resilient, risk-adjusted returns and enables the financing of critical infrastructure assets that will underpin long term economic growth and the transition to a more sustainable future.”
Deborah Shire, deputy head, at BNP Paribas Asset Management Alts, said: “The successful closing of our second junior infra debt fund, in excess of our target and with capital raised from both existing and new investors, reflects the platform’s proven track record of performance, scale and selectivity, as well as increased investor demand for yield-generating assets that offer a diversification play and relative value.
“Infrastructure investments that support Europe’s sovereignty, decarbonisation and digitalisation needs continue to demonstrate their attractivity, with their low correlation to traditional asset classes enhancing portfolio stability. We expect this dynamic to persist in the near term, with the sector offering investors a natural hedge against inflation alongside an attractive illiquidity premium.”
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