Swiss private bank Reichmuth has reached a SFr212 million ($218.9 million; €197 million) on its second diversified infrastructure fund.
The group’s asset management arm launched CIP II late last year with a target of SFr500 million, with commitments coming from Swiss pension funds and insurance companies, as well as a SFr10 million investment from Reichmuth & Co, Walter Knuesli, relationship manager for institutional clients, told Infrastructure Investor. He added that 65 percent of the investors so far are new to Reichmuth’s infrastructure programme.
The strategy jointly targets investments in the transport, energy and waste sectors. Knuesli said the fund does not take demand risk and that its investments are backed by contracts ranging from three to 20 years. Three investments in the transport space have been agreed so far, including a joint venture with rolling stock manufacturer Stadler Rail. The vast majority of the fund’s investments are set to take place in Western Europe, with up to 30 percent reserved for Switzerland. It targets net returns of 6-8 percent, with equity ticket sizes ranging between SFr20 million and SFr 80 million in a 12-year fund structure.
Reichmuth’s infrastructure funds have to date operated in a Swiss fund structure and have only been available to Swiss investors. However, Knuesli said the firm plans to launch a Luxembourg-based structure next year, widening the potential investor base.
The fund’s predecessor was launched in 2013 and raised SFr250 million. It also owns a rail freight platform in which it has invested about SFr 400 million over nearly 10 years.