Schroders Capital reaches EUR1 billion hard cap fundraising target for European junior infrastructure debt fund
Schroders Capital has reached the EUR1 billion hard cap fundraising target for the Schroder Euro Enhanced Infrastructure Debt Fund II (JULIE II).
The fund, which is managed by Schroders Capital’s specialist infrastructure team, was launched in Q3 2020 and invests in European sub-investment grade infrastructure debt opportunities. The fundraising has been evenly split between Asian and European investors.
Today’s news follows shortly after an update in June which confirmed that more than EUR700 million had been raised. The fund is the second vintage of this strategy whose first fund (JULIE I) was launched in 2017, raising close to EUR350 million. This was almost fully deployed within two years.
In January 2021, Schroders appointed Chantale Pelletier as Schroders’ Global Head of Infrastructure to lead the growth and development of Schroders’ infrastructure investment platform.
Chantale Pelletier, Global Head of Infrastructure, Schroders Capital, says: “Investor interest in JULIE II has been exceptionally strong since this vintage was launched last year. To reach the hard cap target of EUR1 billion in a relatively short space of time is testament to the belief our investors have in the team’s ability to identify excellent investment opportunities and deliver robust returns.
“Opportunities in the infrastructure investment space are being driven by key megatrends and we continue to ensure we are well positioned to support investors.
“Post Covid-19, infrastructure projects will form the basis of the world’s economic recovery making it even more important for Schroders Capital to position itself as a local infrastructure specialist for our clients but on a global scale, with a global perspective.”
Jerome Neyroud, Head of Infrastructure Debt, Schroders Capital, says: “The success and speed of this fundraise underpins how crucial it was for the team to have been one of the first movers in this market.
“We believe this to be among the largest junior debt funds in the market, positioning us as a leading manager in this space, dedicated to meeting the complex needs of our clients and investors.”
Augustin Segard, Head of Enhanced Infrastructure Debt, Schroders Capital, says: “The sub-investment grade infrastructure debt space boasts significant opportunities for investors. Our focus is dedicated to successfully deploying the capital raised to deliver on the extensive support our investors have shown in us.”
JULIE II focuses on mid-sized brownfield core assets based in Europe, with an emphasis on delivering diversified debt exposure across countries and sectors.
Examples of these opportunities include water and energy companies, railways, renewable energy portfolios, electricity grids and roads.
As part of Schroders Capital, which has USD66 billion in assets under management, the specialist infrastructure team provides investors with access to resilient and sustainable returns from essential infrastructure in Europe across the capital structure (senior debt, junior debt and equity).
It has invested cEUR2.8 billion in over 80 infrastructure transactions across the capital structure in 14 European countries and 10 sub-sectors over the last five years.