Return to search

Larger tickets eyed as LBPAM hits second debt fund close

Fresh from raising €413m, La Banque Postale Asset Management is eyeing a final close for the vehicle early next year and has already made seven high-profile investments.

La Banque Postale Asset Management has reached a €413 million second close on its infrastructure debt fund.

The second closing of the fund launched in April came alongside a €400 million second closing for its real estate debt fund and a €240 million first closing for a new corporate debt fund.

René Kassis, managing director at LBPAM and manager for the funds, told Infrastructure Investor the infrastructure debt vehicle will remain open during the first quarter of 2017, although he is not expecting a large increase on what’s been raised already.

“We will continue [to fundraise] because there is pent-up demand and because there may be room to further increase the size of the fund,” he explained. “The bulk of the fundraising is definitely behind us.”

Kassis added that the fund is flexible in terms of the debt formats it is offering and has a wider geographical scope – while remaining in Europe – than its first infrastructure debt fund, launched in 2012. All of its contributions were garnered from European institutional investors.

Since its launch earlier this year the fund has made seven investments, Kassis said. These include the €830 million refinancing of Italy’s Passante di Mestre motorway, the Vinci-led €535 million acquisition of Lyon airport and the €750 million refinancing of France’s A41 motorway.

“Now that the size of the fund has increased that will allow us to go for even bigger tickets in our investments,” Kassis said. “We also have dedicated funds that can co-invest alongside these multi-investor funds so this is also allowing us to go for larger tickets when we can align several funds on one transaction.

“We're going to continue to see a lot of refinancings, M&A activity while the share of 'green infrastructure' is definitely growing with more and more renewable energy transactions and also broadband transactions in France, Italy and Ireland. The sectorial and geographical range is widening. In this new fund we have added Portugal on top of Spain and Italy and we are probably going to see more greenfield next year.”

LBPAM is the asset management division of French bank La Banque Postale. As of the end of June this year it had €179.5 billion assets under management.