Allianz Global Investors (AllianzGI) has launched the UK Infrastructure Debt Fund, which will invest in long-term, investment grade, core infrastructure assets.
The fund will raise up to £500m ($855m) and already has commitments from a number of investors, including Nippon Life.
“This launch is a significant moment for infrastructure funding in the UK. This pioneering fund will provide UK infrastructure with a welcome, additional source of investment,” said Deborah Zurkow, chief investment officer for infrastructure debt at AllianzGI.
Infrastructure debt offers investors the opportunity to invest in projects that support the UK’s economic competitiveness and quality of life, including roads, schools, hospitals, water and energy assets.
As the asset class has developed, AllianzGI has seen strong demand from large institutional investors for separately-managed accounts in infrastructure debt. The fund will run alongside these.
"As this new market continues to develop and mature we expect to see significantly more institutional investor interest, which will help meet society’s need for substantial infrastructure funding,” said Zurkow.
AllianzGI was the first global investment manager to establish a dedicated infrastructure debt team in the UK.
Over the last twelve months, AllianzGI has invested €2bn on behalf of its clients into eight infrastructure debt transactions across seven European countries, including the M8 project in Scotland.
In addition to these transactions, AllianzGI has a pipeline of investments either at the tender stage or close to completion.