Allianz Global Investors,has announced the launch its second UK Infrastructure Debt Fund later this year. The fund, aimed at institutional investors, will invest in long-term, investment grade, core UK infrastructure assets, including primary brownfield and greenfield transactions within the transport, energy and social infrastructure sectors.
Like AllianzGI’s pioneering first UK Infrastructure Debt Fund, launched in 2014 with a target of US$858 million, this new vehicle will allow a broad range of investors, including small and medium sized pension funds and institutions, the opportunity to access the long-term, stable cash flows that investments in infrastructure provide.
Adrian Jones, UK infrastructure debt portfolio manager, said:
“Having helped ‘prove the concept’ of infrastructure debt as an asset class suitable for institutional investors over the last few years, the demand from our clients for a second fund reflects the maturity of the UK infrastructure debt market . We are seeing strong, ongoing interest from our clients, domestic and international in funding important UK infrastructure projects. As with our first fund, when ‘Fund 2’ launches, it will give institutional investors the chance to invest in real assets that, on top of the attractive investment opportunity, also support our quality of life and the UK’s economic competitiveness”.
AllianzGI has already committed over £750m on behalf of its clients into UK infrastructure projects. This portfolio includes the Aberdeen Western Peripheral Route and M8 road projects in Scotland, university accommodation in Nottingham and Exeter, and the A1/A4/A5 project in Northern Ireland.