Munich-based MEAG has reached a first close of €200 million for a new infrastructure debt fund targeting €500 million.
The asset management arm of German insurance firms Munich Re and ERGO expects to make its first investment through the MEAG Infrastructure Debt Fund Sub-Fund 1 this month. It is understood the fund will invest primarily in senior debt and only in Europe.
The final close is expected during this year and targets returns above 3 percent, MEAG told Infrastructure Investor. Investors to date have predominantly been iEUropean insurance companies.
The fundraising is MEAG’s first attempt to raise an infrastructure debt fund for external clients, with the group having previously invested in almost 50 projects on a separate account basis, such as UK rolling stock and the London Gateway Port.
“We designed the fund to meet the specific needs of regulated investors. This has met with a positive response in the market and makes us confident for the second funding round,” said Harald Lechner, managing director of MEAG, in a statement.
MEAG’s infrastructure debt business has been headed up by Thomas Bayerl since 2014. The asset manager last year also began a push into infrastructure debt in North America, which is led by senior vice president Rudi Stuetzle.