Infranity successfully launches its Enhanced Return Debt Fund with over 1.5 billion in investor commitments
10 SEPT, 2024
Infranity, leading specialist in infrastructure investment and part of the Generali Investments ecosystem, has announced the success of the launch of its Enhanced Return Debt strategy. The combined fund, along with co-investment commitments, has already surpassed half of its target, reaching 1.585 billion euros in commitments.
The Enhanced Return Debt Fund (ERDF) has received significant initial capital from the Generali Group and strong support from recurring investors. The fund also attracted considerable interest from new sophisticated institutional investors, such as pension funds, sovereign funds, in addition to insurance companies and traditional investors in this asset class.
Infranity's ERDF is in a unique position, focusing on senior debt opportunities in the "sub-investment grade" debt segment of infrastructures, which offers attractive relative value. The fund will be classified in accordance with Article 8 of the SFDR regulation on sustainability, with ambitious ESG objectives and an allocation of 50% of the fund to climate solutions, with special attention to renewable energies, low-carbon energy transition projects and essential digital and social infrastructures.
In line with Infranity's operating model, capital investment is occurring at a high rate. Five seed assets have already been executed, for a total value of 310 million euros. These include investment in the renewable energy sector, with 125 million euros of financing for an Italian IPP solar platform.
Since its creation in 2018, Infranity has built a solid track record in sustainable infrastructure debt investments, closing almost 100 investments worth over 9 billion euros, always seeking to offer its investors long-term risk-adjusted returns. Infranity's assets now exceed 11 billion euros.
With the Enhanced Debt Return Fund, Infranity aims to continue leveraging the promising market conditions and is expected to close a series of pan-European solar and wind PPIs and the financing of a Nordic data center platform by the end of 2024.
The great interest of investors in our "Enhanced" Debt Fund reflects the growing appeal of high-yield, loss-protected sub-IG senior infrastructure debt, as well as investors' confidence in Infranity's industry experience, strong leadership, and track record. We are very grateful for the trust our investors have placed in us and we are excited about the idea of continuing to carry out infrastructure projects with significant environmental and social benefits along with an attractive risk-adjusted return. The success of our fundraising for the ERDF and our investment capacity are testament to the dynamic trajectory of the company and lay the groundwork for further expansion and greater impact in the infrastructure debt market.
Philippe Benaroya, CEO and Managing Partner of Infranity
