AXA Investment Managers - Real Assets raises €730 million at the initial closing of its first infrastructure debt fund
AXA Investment Managers - Real Assets (“AXA IM - Real Assets”), a global leader in real assets investment and the leading(1) real estate portfolio and asset manager in Europe, announces the launch of Infrastructure Finance SCS-SIF - European Infra Senior 1 (“European Infra Senior 1” or the “Fund”), its first co-mingled pan-European infrastructure debt fund, which raised an initial €730 million, from five institutions following an effective collaboration between AXA IM - Real Assets and AXA IM sales teams.
European Infra Senior 1 seeks to provide institutional investors with defensive and stable income by investing into a diversified portfolio of core infrastructure project financing across pan-European markets. The Fund will target predominantly senior secured debt investments in the infrastructure (transportation, telecom, social) and energy (including renewables) sectors with a preference for brownfield assets.
The team will continue to apply the same principles that have prevailed throughout the growth of AXA IM - Real Assets’ private debt platform in that the Fund will co-invest alongside existing mandates managed by the Infrastructure Finance team of AXA IM - Real Assets, increasing the ability to deploy significant commitments and to participate in large transactions. European Infra Senior 1 will source opportunities from both the primary and secondary markets. Its fee structure has been designed to reward the selection of assets which will perform over time rather than to incentivise origination volumes.
AXA IM - Real Assets has capped the size of the Fund to €1.5 billion and will continue to monitor carefully the volume of capital raising to ensure a complete focus on delivering performance for its investors.
AXA IM - Real Assets has currently invested €3.1 billion(2) in infrastructure debt, spread over more than 35 different transactions, and via a combination of private and public instruments. The current portfolio is well balanced across several countries comprising France (25%), the UK (24%), the Nordics (17%), Germany (11%); as well as underlying sectors, primarily transport and energy.
European Infra Senior 1 is a further addition to AXA IM - Real Assets significant and established debt platform, which currently has €12.7 billion(3) of assets under management.
Isabelle Scemama, Head of Funds Group at AXA IM - Real Assets, commented: “The successful launch of European Infra Senior 1 with an initial €730 million of capital raised underlines the increasing appetite amongst institutional investors for access to a diversified portfolio of tier-one quality infrastructure loans, which are able to deliver longer-term stable income-driven returns in a low interest rate environment, whilst also being in line with our 360° approach to investing. The size of both this newly launched Fund and our wider debt platform enables us to access high quality, large and complex deals, providing a competitive advantage and better relative value for the benefit of our clients.”
Florence Dard, Head of Client Group France at AXA IM commented: “Our European Infra Senior 1 fund targets institutional clients seeking regular income in a low interest rate environment, and access our co-invest platform. Opening our infrastructure debt platform to third party clients enabled us to reinforce our relationship with major institutional investors, whether insurance companies or pension institutions. They have been attracted by the proven track record of our investment team as well as the robustness of AXA IM - Real Assets’ debt platform.”
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1 Source: IP Real Estate Top 100 Investment Management Survey – Nov/Dec 2015
2 AXA IM - Real Assets’ data figures as of end of October 2016.
3 AXA IM - Real Assets’ data figures as of end of September 2016.
The Fund is reserved for professional investors (within the meaning of the AIFMD) from the following jurisdictions in Europe: Belgium, Germany, Denmark, France, Luxemburg, Netherlands, Sweden and United Kingdom.
AXA Investment Managers - Real Assets
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