Infranity raises initial €1.6bn for infrastructure debt fund

Generali-backed European infrastructure investment manager Infranity has reached the halfway point of its fundraising target for a newly launched debt fund.

Infranity’s Enhanced Return Debt Fund (ERDF) – seeded with five assets worth €310m – secured €1.6bn in capital commitments, including seed funding from Generali and follow-on investments from existing partners.

The manager said ERDF attracted interest from a diverse range of institutional investors, including pension funds, sovereign wealth funds, insurance companies and traditional infrastructure debt investors.

ERDF, which expects to provide senior debt financing to infrastructure projects in the sub-investment grade debt segment, plans to allocate 50% of its capital to climate solutions, with a particular focus on renewable energy, low-carbon energy transition projects and essential digital and social infrastructure.

Among the seed assets is a €125m financing commitment to an Italian solar independent power producer (IPP) platform, the manager said, adding that it expects to close a number of pan-European solar and wind IPPs and financing of a Nordic data centre platform by the end of 2024.

Philippe Benaroya, CEO and managing partner of Infranity, said: “The strong investor interest in our Enhanced Return Debt Fund reflects the growing appeal of high-yielding, downside protected senior sub-IG infrastructure debt, as well as investor confidence in Infranity’s sector expertise, robust leadership and track record.

“We are extremely grateful for the trust our investors have placed in us and are excited to continue delivering infrastructure projects with significant environmental and social benefits alongside attractive risk-adjusted returns.”

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