Deutsche AM closes €1.8 B Pan-European fund II

Deutsche AM has achieved final close of Pan European Infrastructure II L.P. (PEIF II), a closed-end fund focusing on unlisted European infrastructure investments. The fund has achieved total commitments of approximately €1.8 billion (US$2.1 billion) from 31 institutional investors globally, with additional dedicated co-investment capital of at least €800 million (US$936.4 million). This brings the total available for investment to over €2.5 billion (US$2.93 billion).

PEIF II has a primary focus on mature brownfield assets, its strategy is to invest in core Western European economic infrastructure assets across various industry sectors and countries. The fund aims to generate steady cash yield with long-term capital appreciation.

Investors are represented from across 15 countries, including Europe, Asia Pacific, North America and the Middle East. Pension funds and insurance (40% each) represent the largest category of investor; the remainder comprises banks, asset managers and funds of funds.

The fund has already achieved traction, completing three investments to date. These include the acquisition of Akiem, the second largest locomotive leasing business in Continental Europe; TCR, an airport ground support equipment rental and service provider; and most recently have entered into a consortium deal to acquire a controlling stake in the Venice Airport Group, SAVE.

Hamish Mackenzie, Head of Infrastructure at Deutsche Asset Management stated:

“This is a great fund raising achievement for PEIF II and demonstrates the confidence investors have in our team’s ability to deliver upon strategy. Europe is the most developed private and public infrastructure market and we believe our team has the discipline, relationship network and extensive experience to access and manage this deal potential for our investors.”