Fund manager Edmond de Rothschild Asset Management has launched its second infrastructure debt fund aimed at the institutional investment market, with the aim of raising €400-800 million.
The fund will be Luxembourg regulated but managed by a team based in London and will focus on infrastructure opportunities in Europe and in particular, in the UK. Edmond de Rothschild AM’s first infrastructure debt fund was set up in 2014 for French institutional investors. It raised €595 million and has invested 71% of the capital committed in conventional and renewable energy, road, rail and air transport and social infrastructure in France, Germany, Austria, Belgium and the UK.
According to Edmond de Rothschild AM, infrastructure debt is appealing to long-term investors seeking yield and diversification given low interest rates. It added that infrastructure funding is part of the Rothschild history, as the family helped fund major projects in the past, such as the Suez Canal and Europe’s railway network in the nineteenth century.