Meag Munich Ergo, a German asset management company, has successfully completed a second closing of its Meag infrastructure debt fund Sub-Fund 1 with more than €600 million ($667 million) in capital commitments.
The firm was initially seeking to raise €500 million ($556 million), and it raised €200 million ($222 million) at its first close at the beginning of the year, according to MEAG.
The fund received backing from insurance companies and pension funds. The majority of its investor base is in Germany, at two-thirds, with the remaining third also in Europe.
According to the firm, the fund invests in leveraged infrastructure and has already deployed half the capital raised in its first closing.
"Institutional investors like pension funds and insurance companies have been increasingly diversifying their investments in recent years, so alternative investments are becoming ever more important and popular as a reaction to the protracted low interest rate period,” said Sofia Harrschar, head of alternative investments – real assets at Universal-Investment, in a statement. “Infrastructure investments made using equity and debt instruments offer a good risk/return ratio in this scenario."
Meag manages assets valued at approximately €268 billion ($298 billion) for Munich Re Group and Ergo Group.
