Netherlands-based NN Investment Partners has launched its first European infrastructure debt fund, targeting €200 million and focusing on sustainable assets.
The NN European Sustainable Infrastructure Debt fund hopes to secure a first close in the first half of next year, the group told Infrastructure Investor. Further closes will depend on demand, it added, with the last one taking place no more than 18 months after the first.
The fund has a €500 million hard-cap and is targeting gross returns of 3 to 4 percent. It is looking to make between 10 and 15 direct debt investments in infrastructure projects and infrastructure corporates across the social infrastructure, transportation, energy, utilities, and digital infrastructure sub-sectors. It has a duration of between 12 and 15 years.
NN IP said the fund will be able to offer “measurable social and environmental impact without giving up financial returns”, a move it says it has made in response to growing investor demand.
“Each investment will be required to meet certain ESG thresholds under a strict sustainability framework and following the advice of the NN IP Responsible Investing team,” a spokesman told Infrastructure Investor. “In practice, this means that some clear investment choices will be made.
“We firmly believe that this approach will ultimately add value for our investors over the long term. The fund will also provide investors with enhanced ESG reporting with links to certain UN Sustainable Development Goals taxonomies and performance data.”
While the fund is NN IP’s first, its infrastructure debt team has about €1 billion of assets under management and made its first infrastructure debt investment in 1992. It is led by Alistair Perkins, who joined in 2013 from Brussels-listed Dexia.