Frankfurt-based Prime Capital is now targeting €200m-$250m for its inaugural Prime Sustainable Infrastructure Debt Fund (PSIDEF), below the original €300m goal, as the firm extends its fundraising period to July 2026, according to a report by Infrastructure Investor.
Launched in Q3 2023, PSIDEF has already deployed around 75-80% of its capital across mid-market European and Nordic infrastructure projects, including energy transition, decarbonisation, and modern infrastructure assets. The fund is reportedly delivering a gross IRR of 10.5% while targeting an 8% cash yield and is classified as an Article 9 product under the EU’s Sustainable Finance Disclosure Regulation.
The report cites unnamed sources familiar with the fund as saying that the extension allows Prime to accommodate final commitments from LPs, with several interim closings expected over the next six to eight weeks. The adjustment in target reflects a continued preference among some investors for larger asset managers, though there is optimism that LPs are refocusing on mid-sized managers to diversify their portfolios.
Market conditions have also improved, with European base rates easing and infrastructure debt increasingly attractive amid rising corporate credit volatility. The fund is expected to start making repayments to investors towards the end of 2027.
Prime Capital, which manages approximately €4bn in assets, is understood to be planning a successor fund in H1 2027 with a target between €300m and €500m, aligning with the end of PSIDEF’s investment period. The firm’s Prime Green Energy Infrastructure Fund has delivered a 9.86% IRR and 1.28x TVPI, according to PEI Group data.
Prime Capital reportedly declined to comment.
