Allianz ups target after €600m first close for infra equity fund

The firm’s European infra fund is its first attempt at raising third-party institutional capital for an infrastructure equity strategy.

Allianz Global Investors has increased the target size for its maiden European infrastructure equity fund following a first close exceeding €600 million.

The Allianz European Infrastructure Fund was targeting €500 million upon launch in March this year. This has been adjusted to €750 million after the wealth of interest in the first close.

The German insurer said commitments came from across Europe in what was the group’s first attempt at raising funds for infrastructure equity from third-party investors, bar its renewable energy fund series. It has also previously raised funds for Europe and UK-focused infrastructure debt investments.

The vehicle is targeting assets predominantly in energy, transport and communication infrastructure, according to a statement. Allianz declined to state its targeted returns.

The fund, which is managed by Allianz Capital Partners, has not made any investments so far, although a seed asset will be acquired before the end of the year, a spokeswoman told Infrastructure Investor, with a final close also expected this quarter.

“There is a strong alignment of interest between the fund investors and Allianz, with Allianz investing at least an equal share of capital for each transaction to come,” the spokeswoman added.

Allianz has previously made a number of infrastructure equity investments through the group’s internal funds, including Thames Water, a gas distribution network in Spain and Italian roads group Autostrade per l’Italia.