UBS AM launches infrastructure debt fund with €448m commitments
UBS Asset Management has launched a second infrastructure debt fund, Archmore Infrastructure Debt Platform II (IDP II), with seed commitments of more than €448m.
The launch of the IPD II took place against the background of the successful development of its predecessor fund – the Archmore Infrastructure Debt Platform I (IDP I), which is now 94% deployed and has a strong pipeline of attractive new investment opportunities. The strategy of this follow-on fund remains consistent; IDP II will focus on private infrastructure debt opportunities in Western Europe, primarily through direct lending, aiming to take advantage of the continued capital supply/demand imbalance in the mid-size European infrastructure investment market, where borrowers are seeking alternative sources of capital.
The capital seeding IDP II comes from nine institutional investors, comprising a mix of insurance companies and pension funds spread across five European countries and Japan. Over 75% of these institutions are also invested in IDP I. The asset class provides defensive and stable income streams and benefits from capital efficient treatment under Solvency II.
IDP I closed successfully in September 2016. The fund’s capital has been deployed into 11 investments to date, creating a balanced portfolio across sub-sectors and countries. The latest investment was made into the refinancing of a brownfield toll road in Poland, where IDP I has committed €75m.
IDP II will be managed by an experienced investment team led by Tommaso Albanese, the fund’s CIO, based in London, and forms part of REPM’s global Infrastructure team of 31 professionals working across six offices globally with€3.37bn of capital commitments for investment into infrastructure, through debt and equity strategies.