UBS closes second infra fund of funds strategy on €368m

The vehicle has secured 65 investments to date and is a successor to a €240m vintage launched in 2010.

UBS Asset Management has closed its second infrastructure fund of funds vehicle on €368 million following two years of fundraising.

The fund primarily targeted German and Austrian institutional investors, although €25 million was also secured from Italy’s Laborfonds. The fundraising was launched in 2016 by UBS alongside German fund administrator Solutio.

APPIA II Global Infrastructure Portfolio has mainly targeted investments in primary funds across the energy and utilities, transport, communications and PPP sectors in Europe and North America. It has made 65 investments so far, including secondary deals such as the acquisition of a stake in the €2 billion Arcus European Infrastructure Fund 1 in 2016.

The fund had originally been targeting a close of about €300 million and is believed to be eying returns of about 7 percent.

“Thanks to the intelligent implementation of the investment strategy, the portfolio has already [passed] the J-curve for the final closing,” said Robert Massing, chief executive of Solutio, in a statement. “For traditional funds of funds, it typically takes some time for the individual investments to reach [a positive valuation]. We are very pleased that this effect occurred early for the benefit of our investors [and] has already yielded positive contributions.”

UBS and Solutio launched the first APPIA Global Infrastructure Portfolio fund in 2010, collecting €240 million in 2014 for the 15-year vehicle and investing along a similar strategy to its successor.

UBS is also currently raising its second European infrastructure debt fund after reaching a €448 million first close on Archmore Infrastructure Debt Platform II in March, as well as raising the UBS Clean Energy Infrastructure Switzerland 2 fund. It is also believed to be nearing the launch of its third international infrastructure equity vehicle.