UBS AM reaches €1b hard cap for 2nd infrastructure debt fund

UBS Asset Management's (UBS-AM) real estate & private markets (REPM) business has raised a total of €1 bn at the final close of its second European infrastructure debt fund, Archmore Infrastructure Debt Platform II (IDP II).

The total sum, which was reached within nine months of its launch, substantially exceeds its original €700 mln target following oversubscribed investor interest, UBS AM said.

'The successful closing of our second European infrastructure debt fund has received strong support from both new and existing investors, who have looked to the track record of IDP I and reaffirmed their confidence in our strategy, underpinned by efficient deployment and investment diversification,' said Tommaso Albanese, head of infrastructure at REPM.

'The wider platform’s performance is testament to the ability of our team to generate attractive investment opportunities that provide a balanced risk profile and superior returns. While we will remain selective in our approach, IDP II’s exciting pipeline provides me with confidence in its ability to deliver solid results.'

The capital has been raised from 48 limited partners, comprising a mix of pension funds and insurance companies from 10 different countries across Europe and Asia. UBS AM said that the fund-raising benefitted from over 70% re-up rate from investors in IDP II’s predecessor, Archmore Infrastructure Debt Platform I (IDP I), which completed its final investments in 2018.

UBS AM said that IDP II would look to take advantage of the continued capital supply/demand imbalance in the mid-size European infrastructure financing and focus on private senior secured infrastructure debt opportunities, primarily through direct lending. Since its launch in March 2018, IDP II already committed over 20% of capital raised to four senior infrastructure financing transactions.

REPM’s European infrastructure debt platform now totals €1.6 bn in committed capital across the two iterations of the Archmore European IDP funds, and has invested in 16 transactions with operations spread across 11 countries over the past four years.


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