Golding Capital Partners, the Munich-based alternative asset manager, has closed an infrastructure fund of funds for institutional investors on €590 million.
Golding Infrastructure SICAV VII had a target of €400 million and becomes, according to a Goldman statement, “the largest diversified infrastructure fund of funds ever raised in the German-speaking area”.
The fund focuses on Europe and North America and covers the energy, transport, utilities and social infrastructure sectors. It aims to generate “early current yield” as well as an overall return of between 8 and 9 percent.
Golding will aim to build a portfolio “combining yield-driven infrastructure projects in the core and core-plus areas with return-oriented value-add projects”.
Almost 40 percent of investor commitments have already been drawn down and invested in a globally diversified portfolio of infrastructure funds. Almost two-thirds of the fundraising total came from existing investors.
“Now is precisely the time to invest in infrastructure as an asset class,” said Jeremy Golding, founder and managing partner of Golding, in a statement. “Early dividends generated in the first year of the fund’s life make a steady contribution to net investment income. In the current low interest rate environment that is very attractive for investors.”
Golding now manages around €1.5 billion of infrastructure assets and is already working on a successor fund according to managing partner Hubertus Theile-Ochel.
The firm manages over €4 billion in assets in total, with a focus on private equity and private debt as well as infrastructure. It has more than 60 employees and offices in Munich, Luxembourg and New York. Its 120 institutional investors include insurance companies, pension funds, foundations and banks.