Pension funds and insurance companies have put up 80% of the €1.8bn raised by Deutsche Asset Management for its Pan European Infrastructure II fund (PEIF II).
By its final close the infrastructure fund – a closed-end vehicle for unlisted European assets – had more than €2.5bn in total to invest, including additional co-investment capital of €800m from Deutsche AM, the manager said.
Hamish Mackenzie, head of infrastructure at Deutsche AM, said: “This is a great fundraising achievement for our follow-on fund PEIF II and demonstrates the confidence investors have in our team’s ability to deliver upon strategy.”
Investors committing capital came from regions including Europe, Asia Pacific, North America and the Middle East, the firm said.
Pension funds and insurance providers was the largest category of investor, with each of these two types of institution accounting for 40% of the capital raised, it said.
Eight investors put more than €100m in each.
PEIF II’s strategy is to invest in core Western European economic infrastructure assets in various industry sectors and countries, concentrating mainly on mature brownfield assets. The fund aims to produce a steady cash yield with long-term capital appreciation, Deutsche AM said.
It has already made three investments, including the acquisition of Akiem, the second-largest locomotive leasing business in Continental Europe, and airport ground support equipment rental and service provider TCR.
Most recently, the fund joined a consortium deal to buy a controlling stake in the Venice Airport Group, SAVE.
The fund follows on from the previous fund, PEIF, which closed in July 2007.