MEAG launches second infra fund with EUR800mn target

The asset management company, MEAG MUNICH ERGO AssetManagement GmbH, has launched its second infrastructure fund, MEAG Infrastructure Debt Fund II, to keep up with the investors' demand. 

The investment objective of the infrastructure fund is a consistently attractive return, primarily achieved through ongoing income from investing in a portfolio consisting of infrastructure debt investments. The preservation of capital is a central premise. The investment policy provides for the investment in financing for the development and operation of infrastructure projects via loans or bonds. The projects can be in different development phases, from the first groundbreaking ("greenfield") to ongoing operation ("brownfield"). The financing can cover all areas of the infrastructure spectrum, such as transport and traffic, utilities, energy, communication, and society.

The special fund offers institutional investors a broadly diversified investment with an optimized risk/return profile in the infrastructure finance asset class. The target volume is EUR800 million (US$955.11 million), the planned term is around 25 years and the average modified duration is 11-13 years. The average target return is 2.75% pa before costs.

In addition, the income and cash flows of the investment projects can be planned and are well suited to covering long-term payment obligations. For these reasons, the asset class infrastructure debt capital is particularly suitable for investors who are subject to the Insurance Supervision Act (VAG). Further, bank regulatory reporting requirements fulfilled.

The MEAG Institutional Fund SCS SICAV RAIF - MEAG Infrastructure Debt Fund II is aimed at institutional investors and was launched on the MEAG Luxembourg S.à rl platform.