F2i seeks €500m for debut infra debt fund – updated

The Italian asset manager has raised more than half of its final target at first close for Infrastructure Debt Fund I whose strategy will focus on senior and junior debt.

Italian infrastructure fund manager F2i has reached a first close of €310 million for its debut infrastructure debt fund, which will target investments across a range of infrastructure subsectors in Italy and the EU.

Infrastructure Debt Fund I will focus on “senior and junior debt through loans (direct lending) and bonds”, the Milan-based firm said in a statement. Classified as an Article 8 fund under the EU Sustainable Finance Disclosure Regulation it aims “to support the development and refurbishment of infrastructure… in key sustainability sectors”, F2i said. These sectors include energy and utilities; broadband, data centres and telecom towers; social infrastructure, such as hospitals and PPPs; transportation; and environmental services.

Asked how investments across these sectors will comply with the sustainability label, F2i’s chief investment officer, debt, Gianluca Gustani said: “IDF1 investments will be labelled ‘sustainable’ because the target companies shall comply with one of the following features:
they will have an intrinsic high sustainability profile thanks to the sector in which they operate (e.g. renewables, fiber networks, hospitals); present a distinctive sustainability profile with respect to their peers (e.g. data center companies with a high degree of energy supply from renewable sources); or have implemented/intend to implement a plan to improve their sustainability profile, for example by adopting mitigation actions to negative impacts deriving from the sectors in which they operate.”

Individual ticket sizes will range from between €30 million and €50 million, he told Infrastructure Investor, noting that there was some leeway for those figures to be slightly higher or lower depending on the investment opportunity.

The firm is also targeting sustainable infrastructure on the equity side, having launched Fondo per le Infrastrutture Sostenibili, its fifth flagship fund in 2021, which has a final target of €1.5 billion. As of this past May, it had raised €1.2 billion.

IDF1’s first close, made possible with the support of Italian and European LPs, brings F2i’s total AUM to more than €7 billion.

Updated third paragraph provides details regarding the sustainaiblity of IDF1’s target investments.