Debt

The increase in the number and size of debt funds augers well for an asset class expected to grow on the back of compressed equity returns and persistently low interest rates.

The firm has already raised €500m from European investors and will now pitch the vehicle to Australian LPs.

The US firm has been preparing for the new strategy since last May when it hired former BlackRock infrastructure debt chief Erik Savi.

The investment in a 5GW UK renewables portfolio is a first of its kind for MIDIS and it “definitely sees this as the first of more to come”, Tom van Rijsewijk tells Infrastructure Investor.

Investors are seeking out lower-risk alternatives to existing fixed income and real asset equity exposure, according to investment consultant bfinance.

The French manager is already targeting the launch of its fifth instalment this year, with the fund 65% invested.

The Dutch firm has put London-based partner Paul Nash, who has been with DIF since 2008, in charge of the strategy.

The vehicle will be capitalised to the tune of $1.98 billion, with $180 million in equity from the two partners and $1.8 billion in debt issuance capacity guaranteed by the Singapore government.

Troy Rieck, the superfund’s newly appointed CIO, talks fees, an increase in co-investments and debt commitments, and why he ‘doesn’t care’ about the definition of infra – as long as it’s a good investment.

Only 40% of the debt issued during Q3 of this year met international criteria on green finance.