Reichmuth to target non-Swiss LPs for first time with third fund

The fund will target between €400m and €600m, with a focus on clean transport and clean energy.

Swiss private bank Reichmuth & Co is set to launch its third infrastructure fund, targeting investors beyond its domestic base for the first time, with a Luxembourg-based vehicle.

The fund aims to raise between €400 million and €600 million, Walter Knüsli, responsible for the group’s infrastructure client relations and business development, told Infrastructure Investor. It will be Reichmuth’s first euro-denominated fund – Knüsli said it will target LPs in Germany, Austria and the UK, as well as Switzerland.

Reichmuth Infrastruktur II, which closed on SFr320 million ($348.4 million; €300.2 million) in June, was only marketed to Swiss investors, as was its predecessor.

The 12-year fund targets net returns of 6 percent to 9 percent in brownfield assets in Europe, particularly in the clean transport and clean energy sectors. Knüsli said this will be Reichmuth’s first sustainability-focused infrastructure fund.

“We explicitly target CO2 reduction as a major theme the first time we are targeting that goal,” he explained. “Beforehand, it was ultimately about achieving a stable return of 6 percent to 8 percent, and here we want to target specific sustainability goals in line with the EU taxonomy.”

Knüsli added that the new fund will target assets in the waste-to-energy sector.

Reichmuth Infrastruktur II is about 60 percent deployed, having made six investments to date. Although it has maintained the group’s focus on European rolling stock and freight rail, in March it made its first wind investment with the acquisition of a 60MW project in Sweden from PNE Group. It followed this in June with a co-investment with NTR in an 86MW site, also in Sweden.