Schroders Capital has raised an initial €320m for its latest European sub-investment grade infrastructure debt fund.

The fund manager said its Schroders Capital Junior Infrastructure Debt Europe III (Julie III) fund’s first close was backed by Asian and European investors.

Julie III, which was launched at the end of last year, focuses on brownfield, core, mid-market assets in Europe and aims to achieve diversification across countries and sectors, Schroders said.

The previous fund in the series, Julie II, launched in 2020 and raised over €1bn at its close in July 2021, was fully deployed in just over two years.

Augustin Segard, co-head of infrastructure debt investments and fund manager at Schroders Capital, said: “For this third vintage of our sub-investment grade infrastructure debt strategy, we are maintaining our focus on high-quality, brownfield and core infrastructure assets.

“This historical positioning has proven to be beneficial as the two previous vintages performed strongly during the COVID-19 period and thereafter in a higher rate and inflationary environment. The strategy is all the more compelling with the higher yields on offer.”

Jerome Neyroud, head of infrastructure debt at Schroders Capital, said: “We are pleased with this successful and promising first close in a challenging fundraising environment. This is testament to the relevance of the strategy in a more credit-volatile environment.”

Chantale Pelletier, global head of infrastructure at Schroders Capital, said: “The strong interest from our current investors demonstrates the quality of the strategy and the strength of investments realised.

“Opportunities in the infrastructure investment space are being driven by key megatrends, including decarbonisation and energy independence, as well as digitisation, and we continue to ensure we are well positioned to support investors.

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