Munich-based Yielco Investments has closed its Infrastruktur I fund of funds on €310 million, slightly above its €300 million hard-cap.
The fund garnered two-thirds of its contributions from German insurance companies, with the remainder coming from domestic pension funds. The vehicle, which reached a €155 million first close shortly after its launch in 2014, targets a return of between 8 and 9 percent.
Uwe Fleischhauer, member of the executive board of Yielco, confirmed to Infrastructure Investor the fund is now 75 percent invested after acting as LP in vehicles managed by Equitix, Cube, Ardian, Arclight and Infracapital. Its strategy spans the energy, transport and telecoms sectors, with 50 percent invested in Europe, 35 percent in North America and the remainder in the rest of the world.
“The rather conservative risk profile of Yielco Infrastruktur I is the preferred investment strategy for many institutional investors,” Fleischhauer said. “Our diversified programme is already at an early stage in a well-balanced state with a positive return.”
Meanwhile, Yielco also revealed that it is set to launch a second infrastructure fund in the second quarter of this year, with a similar strategy to be pursued. Fleischhauer said the target would be raised slightly – to €400 million or so – and a first close of about €100 million is expected in the summer. He also said that direct investments would be considered if Yielco could find the demand.
The firm was formed in 2011 by Fleischhauer and Andre Hesselmann. It also acts in private equity and distressed debt investments.