UBS Asset Management’s (UBS-AM) second European infrastructure debt fund, launched six months ago to raise €700m, has so far exceeded its fundraising target by more than 21%.
Earlier this year, UBS-AM’s Real Estate & Private Markets (REPM) launched Archmore Infrastructure Debt Platform II (IDP II) with €448.4m of seed commitments from insurance companies and pension funds.
UBS-AM REPM said IDP II has now raised over €850m and will remain open to new subscriptions until year-end with a hard cap of €1bn.
The manager said commitments to date have been received from over 40 limited partners, comprising a mix of insurance companies and pension funds from Europe and Asia, 46% of which have previously invested in IDP II’s predecessor, Archmore Infrastructure Debt Platform I which closed in September 2016.
IDP II’s strategy targets private infrastructure debt opportunities of medium size in Western Europe, primarily through direct lending on senior secured projects, where it currently sees the most attractive risk-reward proposition.
The asset class generates stable income from defensive assets providing diversification to institutional investors’ portfolios, as well as the capital efficient treatment it benefits from under Solvency II.
IDP I is now fully invested, paving the way for IDP II which has a strong pipeline of attractive new investment opportunities, it said.
Tommaso Albanese, the head of infrastructure at REPM, said: “Our success in surpassing our fundraising target, with such substantial commitments from repeat investors, shows confidence in our ability to deliver attractive returns via the infrastructure debt markets.
“It also demonstrates the growing appetite for access to a diversified portfolio of tier-one quality infrastructure loans. This strong performance is a credit to the proven track record of our investment team, as well as the robustness of REPM’s wider infrastructure platform, combining compelling debt and equity strategies.”