AXA IM - Real Assets raises over EUR1bn for second infrastructure debt fund
AXA Investment Managers - Real Assets (AXA IM - Real Assets) has held the final close of its second comingled European infrastructure debt fund, European Infrastructure Senior (Floating) 2 (EIS 2), which has raised a total of cEUR1.05 billion, exceeding its original target.
The capital was raised from a diverse pool of institutional investors from across Europe and Asia. The fundraising benefited from repeat investors from EIS 2’s predecessor, European Infrastructure Senior 1 (EIS 1), in addition to a number of new accounts. The investors’ commitment is a credit to the EIS platform’s proven strategy which was supported by the successful track record of its first fund. It also demonstrates the strong demand from institutional investors to gain exposure to the asset class in the current environment.
EIS 2 will pursue a consistent strategy to its predecessor and seek to provide its investors with defensive and stable income by investing into a diversified portfolio of core infrastructure financings across European markets. The Fund will target predominantly senior secured floating rate debt investments. Since its launch in December 2018, EIS 2 has already invested in six transactions in the digital infrastructure, renewable energy and rail transportation sectors in France, Spain and Germany.
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, in addition to co-investing alongside EIS 1, the Fund will co-invest alongside existing mandates and third party capital managed by the Infrastructure Finance team of AXA IM - Real Assets, increasing the ability to deploy significant commitments and to participate in large transactions. EIS 2 will source opportunities from both the primary and secondary markets.
AXA IM - Real Assets’ infrastructure debt platform now totals EUR7.3 billion, spread over more than 80 different transactions, and via a combination of private and public instruments. The current portfolio is well balanced across several countries including France (20 per cent), Germany (15 per cent) and the Nordic countries (21 per cent); as well as underlying sectors, with strong exposure to utilities (18 per cent), renewable energy (17 per cent), digital and telecoms (15 per cent).
Bertrand Loubières, Head of Infrastructure Finance at AXA IM - Real Assets, says: “Since launching our infrastructure debt strategy in July 2013 we have seen a consistent increase in appetite from institutional investors for diversified portfolios of infrastructure loans with the capacity to deliver long-term and stable income-driven returns. We have continued to concentrate our efforts on all infrastructure and energy sectors, including renewable energy and digital infrastructure, while ESG integration across the infrastructure debt portfolio remains critical, now more than ever, in preserving long term value on behalf of our clients.”
Florence Dard, Global Head of Business Development at AXA IM Alts, adds: “Demand for exposure to the asset class has surged in recent months enabling us to close this second Fund above target which, particularly in the current climate, is testament to the proven track record of both our investment team and the European Infrastructure Senior platform as a whole. The critical mass that we have achieved with this fundraise enables us to access high-quality, large and complex deals, providing a competitive advantage and better relative value for the benefit of our clients.”