Deutsche Asset Management has closed its second Pan-European infrastructure fund at about 1.8 billion euros. The limited partners of Pan European Infrastructure II LP include pension funds, insurance companies, banks, asset managers and funds of funds. The fund will invest in mature brownfield assets in Europe.
Deutsche Asset Management (Deutsche AM) today announced the final close of Pan European Infrastructure II L.P. (PEIF II), a closed-end fund focusing on unlisted European infrastructure investments. The fund has achieved total commitments of approximately EUR 1.8 billion from 31 institutional investors globally, with additional dedicated co-investment capital of at least EUR 800 million. This brings the total available for investment to over EUR 2.5 billion.
PEIF II has a primary focus on mature brownfield assets, its strategy is to invest in core Western European economic infrastructure assets across various industry sectors and countries. The aim is to generate steady cash yield with long-term capital appreciation.
Investors are represented from across 15 countries, including Europe, Asia Pacific, North America and the Middle East, and has resulted in 26 new clients for the business, with eight committing over 100 million euros each. Pension funds and insurance (40% each) represent the largest category of investor; the remainder comprises banks, asset managers and funds of funds.
The fund, managed by our infrastructure business, has already achieved great traction, completing three investments to date. These include the acquisition of Akiem, the second largest locomotive leasing business in Continental Europe; TCR, a leading airport ground support equipment rental and service provider; and most recently have entered into a consortium deal to acquire a controlling stake in the Venice Airport Group, SAVE.
“This is a great fund raising achievement for PEIF II and demonstrates the confidence investors have in our team’s ability to deliver upon strategy,” said Hamish Mackenzie, Head of Infrastructure at Deutsche Asset Management. He added: “Europe is the most developed private and public infrastructure market and we believe our team has the discipline, relationship network and extensive experience to access and manage this deal potential for our investors.”
Deutsche Asset Management is the fifth largest infrastructure asset manager as ranked by IPE Real Estate, and currently holds EUR 7.9 billion in direct infrastructure assets under management as of March 31, 2017.
Deutsche Asset Management – Infrastructure
Deutsche Asset Management’s infrastructure investment business has been investing in infrastructure assets since 1992. The global platform – which provides client solutions covering private equity infrastructure, listed infrastructure and infrastructure debt – gives investors access to such economic sectors as transportation, utilities, telecommunications, and other service sectors critical to the basic functioning of local and global economies. As part of the Alternatives platform, this infrastructure business has €19.5 / $20.8 billion in assets under management, 18+ years direct infrastructure experience and 49 infrastructure investment professionals as at March 31, 2017.
An investment in infrastructure involves a high degree of risk, including possible loss of principal amount
invested, and is suitable only for sophisticated investors who can bear such losses. No assurance can be given that investment objectives will be achieved.
Past performance is not a guarantee of future results. Confidential. For Professional Client MiFID Directive 2004/39/EC Annex II) only.
Deutsche Asset Management
With EUR 723 billion of assets under management (as of March 31, 2017), Deutsche Asset Management¹ is one of the world’s leading investment management organizations. Deutsche Asset Management offers individuals and institutions traditional and alternative investments across all major asset classes.
¹ Deutsche Asset Management is the brand name of the Asset Management division of the Deutsche Bank Group. The respective legal entities offering products or services under the Deutsche Asset Management brand are specified in the respective contracts, sales materials and other product information documents.