Fundraising

Deutsche AM closes second infra fund on €1.8bn

The firm has raised €800m in co-investment capital alongside the vehicle, which had a €2bn target and is targeting a net IRR of 10%.

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Deutsche Asset Management has brought its latest infrastructure fundraising effort to a final close, collecting about €2.6 billion for a closed-ended fund and related pools.

Pan European Infrastructure II secured around €1.8 billion from 31 institutional investors, with a further €800 million supplied as co-investment capital. Some 40 percent of the fund’s investors are pension funds and insurance companies, with the remainder comprising banks, asset managers and funds of funds.

Launched in 2014 with a €2 billion target, PEIF II seeks investments in core, brownfield economic infrastructure assets across western Europe. It targets a net IRR of 10 percent and 6 percent in yearly cash yield, according to the Public School Teachers’ Pension and Retirement Fund of Chicago.

LPs invested in the fund include ATP, Kuwait Public Institution for Social Security, City of Edinburgh Council, Stichting Rabobank Pensioenfonds, ENPAB, COIF Charities Investment Fund, Fonds de Pension Proximus OFP, ASGA Global Infrastructure, Pantheon Infrastructure and Dekra, according to Companies House. Investors are based in 15 countries around the world. The European Investment Bank also committed €100 million towards the vehicle.

The fund has completed three investments to date, all within the transport sector. These include joint control with InfraVia of the Venice Marco Polo airport concession company, a firm that also holds stakes in three other airports in Italy and one in Belgium. It has also bought locomotive leasing business Akiem and TCR, an airport ground support equipment provider.

Hamish Mackenzie, head of infrastructure at Deutsche AM, hailed Europe as “the most developed private and public infrastructure market”. The vehicle is a successor to the Pan-European Infrastructure Fund, which closed on €2.1 billion in 2007 and which Deutsche AM said “is considered one of the best performing funds of its vintage”, although it had not responded to requests for returns data by press time.