Schroders Capital has raised €2bn for its latest European sub-investment grade infrastructure debt strategy.
The asset manager said its private debt and credit alternatives business secured the capital commitments for its Junior Infrastructure Debt Europe III (JULIE III) fund and its associated co-investments.
The strategy, which is backed by investors such as insurance companies, pension schemes, asset managers and sovereign wealth funds, targets mid-market infrastructure, particularly brownfield assets in core European countries across sectors including data centres, energy and renewables.
Schroders Capital said JULIE III has already deployed approximately 50% of its capital, delivering a gross return over 8%.
Jerome Neyroud, head of infrastructure debt at Schroders Capital, said: “This latest fundraise marks an important milestone for Schroders Capital. Over the last decade, we have established a leading sub-investment grade franchise in European infrastructure debt as part of the wider growth of our private debt and credit alternatives business globally.
“The success of this latest fundraise is testament to the robust performance track record we have delivered for our investors, as well as our sector expertise in managing the strategy through all market environments since its inception.”
Augustin Segard, head of junior infrastructure debt at Schroders Capital, said: “We continue to see significant growth in the sub-investment grade infrastructure debt market within Europe across several sectors. In recent years, digitalisation and energy transition trends have broadened the spectrum of risk/return available in the market.
“Infrastructure debt offers access to a unique set of non-corporate sectors within private debt, providing strong diversification for investors’ portfolios.
“The ongoing volatility following the recent bout of US policy uncertainty further re-enforces the case for infrastructure debt given its historical performance through dislocated markets.”
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