German pension fund Nordrheinische Ärtzeversorgung (NAV) has boosted its infrastructure mandate with Golding Capital Partners (GCP) by €75 million, taking the asset manager's infrastructure funds under management past €1.5 billion.
NAV had previously given €100 million to GCP to be invested in core/core plus brownfield infrastructure, which the asset manager has already fully deployed. This prompted the €11 billion private pension, one of the largest in Germany, to give the extra €75 million to GCP last December. The funds will mostly be invested in public-private partnership projects and regulated assets, including water and power.
“Persistently low interest rates mean that we have also had to recalibrate our capital investments,” explained NAV managing director Bernd Franken. “The attractive risk-return profile and the possibility of generating early current income convinced us to increase our allocation to the infrastructure asset class.”
This recalibration is also boosting institutional investment in other alternative asset classes, including private equity and private debt, GCP said. “After a record year in 2014, when we raised almost €800 million in new capital, we are well prepared to keep meeting the strong demand for alternative investments,” commented GCP managing director Hubertus Theile-Ochel.
GCP has more than €4.5 billion of assets under management for over 120 institutional investors.