SCOR finalises second fund and starts third debt fund

SCOR Investment Partners, the SCOR group’s portfolio management company, have announced the end of the deployment of €378 million (US$444.06 million) through the SCOR Infrastructure Loans II fund, and the launch of the third generation with the SCOR Infrastructure Loans III fund.

The fund SCOR Infrastructure Loans II, launched at the end of August 2015, has been marketed to a dozen European institutional investors, which have invested alongside the SCOR Group. Deployed over two years for a gross commitment of €381.9 million (US$447.58 million) (equaling 101% of raised capital), the portfolio is comprised of fourteen loans throughout eight sectors and four eurozone countries. The expected gross return is Euribor +2.10% with a weighted average life of 7.8 years.

The fund SCOR Infrastructure Loans III succeeds the fund SCOR Infrastructure Loans II. This new vintage forms part of SCOR Investment Partners’ intent to participate in the energy transition and address climate change. The investment team, headed by Paola Basentini, will favour green projects and aims to obtain the "Energy and ecology transition for the climate" label (Transition Energétique et Ecologique pour le Climat), which is being issued by the French Ministry of Environment, Energy and Sea.

Due to its ability for multichannel sourcing among banks, sponsors and financial consultants, the investment team has set itself a two-year objective to roll-out the raised capital. The investment philosophy, which aims to maximise diversification, remains unchanged and the team will continue to operate with its innovative spirit. The fund has already committed €90 million (US$105.72 million) across three projects.

François de Varenne, Chief Executive Officer of SCOR Investment Partners, commented:

“I welcome the rapid deployment of the SCOR Infrastructure Loans II fund and the high expected return, which surpasses the initial objective. Our strategy on the infrastructure debt market consists of offering investors mid-sized funds – between EUR 300 million and EUR 500 million – with a granularity of 10 to 15 loans. This approach allows us to be flexible and to renew our offer every two years in order to adapt to the market conditions and our clients’ changing demands, including a contribution to the energy transition. Being convinced that private financing will play a key role in tackling the climate change, SCOR investment Partners proposes with the SCOR Infrastructure III fund an investment strategy, which is truly embracing responsible financing.”