Union Investment has raised €442 million ($494 million) from institutional investors for the infrastructure fund “UniInstitutional Sachwerte SCS SICAV-SIF”, thereby completing the subscription phase.
“The high demand for our new fund underlines the need for institutional investors to invest alternatives, not only in the low interest rate environment. Infrastructure investments offer long-term investors the opportunity to increase their return and are relatively independent of economic developments,” said Mirko Häring, head of alternative investment products at Union Investment.
The funds for the fund launched in conjunction with Mercer Private Markets will be used to build a global infrastructure portfolio that includes primary market, secondary market and direct investment.
The “UniInstitutional Sachwerte SCS SICAV-SIF - Infrastructure-Invest 1” invests worldwide in selected infrastructure facilities in the fields of communications, energy, utilities, waste disposal and transport. Social infrastructure investments, for example in healthcare facilities or schools, are also eligible. The regional focus of the broadly diversified fund is Western Europe and North America. In addition to subscribing to new equity funds (primary market investments), which make up at least 50 percent of the portfolio’s investments, secondary market investments in already launched infrastructure funds are also possible. The latter, due to their higher degree of maturity, usually allow an accelerated portfolio construction and earlier returns to the investors. In addition, direct investment in infrastructure assets will open up additional return potential. Overall, investments are planned in more than 100 infrastructure projects.