Schroders raises €532m for sub-IG debt fund as €750m target nears

The Schroder Euro Enhanced Infrastructure Debt Fund II was launched last year, reaching a €312m first close in July.

French asset manager Schroders has raised more than 70 percent of the €750 million target for its second sub-investment-grade infrastructure debt fund.

The group has reached €532 million for the Schroder Euro Enhanced Infrastructure Debt Fund II, following on from a €312 million first close last summer. Its predecessor fund raised €350 million after its launch in 2017.

The new vehicle has made four investments to date, with targeted sectors including water and energy companies, railways, renewable energy portfolios, electricity grids and roads. The deployment so far accounts for about 25 percent of its capital, Schroders said in a statement.

While the sub-investment-grade market has received increased interest of late, the fundraising success is one of “the consequences of our team being one of the first movers in this market”, Jerome Neyroud, head of infrastructure debt at Schroders, said in a statement. The firm has now raised over €1 billion for sub-investment-grade infrastructure debt, across both euro and sterling-denominated strategies.

In January, Schroders named Chantale Pelletier in the newly-created role of global head of infrastructure. Pelletier is set to take up the role later this month.