Aquila Capital, the alternative asset management division of the Aquila Group, has launched a €500 million (US$550 million) vehicle to invest in infrastructure assets and funds.
According to sources, the Alternative Investment Fund Managers Directive (AIFMD) regulated vehicle will invest over the next two years in unlisted and listed global infrastructure, as well as existing assets held by the company.
Additionally, the investment focus will be to generate stable cash yields by constructing a diversified infrastructure portfolio.
More than 50% of this strategy's portfolio will be allocated within Europe, primarily in infrastructure projects that are already in operation, brownfield assets.
The fund, which has a targeted 7% Internal Rate of Return (IRR), will invest across the renewable energy, communication, transport and waste sectors.
Christian Brezina, Head of Fund Investments Private Equity & Infrastructure, said:
“Direct investments from a pre-selected pipeline enable us to quickly build a cost-efficient portfolio that will deliver stable cash yields. We intend to pay out dividends to our investors in the first year of operation. It’s a part of the investment spectrum that is currently under-serviced. This is demand-driven, after clients approached us saying they wanted to access the asset class.”
In July 2014, we reported that Aquila Capital formed a partnership with the Dutch pension fund asset manager APG Asset Management to invest a targeted €500 million in the acquisition and development of European hydropower plants, in one of the largest investments in this renewable energy sector.