DWS is planning to raise €500m for a newly created environmental, social and corporate governance-focused private infrastructure debt investments fund.

The manager said it has launched the ESG Infrastructure Debt Fund (EIDF) to focus on European “sustainability-themed infrastructure sectors which contribute towards making society and economies more sustainable”.

The fund’s target sectors include renewable energy, digital, energy efficiency/utilities, clean mobility/transportation and social infrastructure, the manager said, without disclosing fundraising details.

According to sources, the manager is planning to raise €500m for the newly launched fund.

DWS said EIDF will make 10-15 private infrastructure debt investments with about 70% across senior debt, and 30% in junior debt.

Sundeep Vyas, the head of infrastructure debt, Europe at DWS, said: “EIDF was launched in response to clear investor demand for infrastructure, for debt, and for sustainable products. We believe insurance companies, pension funds and investors looking for a source of duration, diversification and return premium in a low-yielding, fixed income environment will be particularly interested in this fund.”

Hamish Mackenzie, the head of infrastructure at DWS, said: “Covid-19 has accelerated a number of key trends, particularly the focus on sustainability. With assets in the ESG space at the forefront of our society and supporting megatrends of the future, we are extremely proud to be a first mover in this space. Investors have the opportunity to use their capital to drive concrete societal change.”

Since establishing its infrastructure debt platform in 2014, DWS has raised €3.1bn of capital and has deployed €2.5bn into private infrastructure debt investments globally.

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