German alternative investment manager Yielco Investments has raised €155m from German insurers and pension funds for its first infrastructure fund of funds.
The company, established in 2011, is seeking to raise €300m for Yielco Infrastructure I and said it had reached the halfway point “earlier than planned”.
To start generating income returns for its investors, the fund of funds will start buying stakes in existing infrastructure funds this year.
“We also expect to enter and close a transaction in the secondaries market soon to further dampen the j-curve,” said Matthias Unser, Yielco Investments managing director.
The fund of funds will invest globally, mainly in small and mid-market opportunities, “with less competitive pressure on valuations”, he said.
Yielco is focusing on energy, transport, utilities and social infrastructure. Telecom and renewable energy investments will play a minor role.
In total, the company now manages around €370m in infrastructure investments, having been awarded a “German insurance company’s managed account mandate and a pension fund’s advisory mandate” in the spring, according to Unser.
Yielco also “supports two German pension funds in allocating and investing a combined €600m in private debt globally”, he said.