Schroders approaches target for sub-debt fund Julie II

Schroders has raised EUR532 million (US$632 million) for the Schroder Euro Enhanced Infrastructure Debt Fund II (Julie II), following a successful first close which raised EUR312 million (US$370.7 million).

The fund, which is managed by Schroder Aida - the group’s specialist infrastructure finance team, was launched in the third quarter of 2020 and aims to invest in European sub-investment grade infrastructure debt opportunities with a target of EUR750 million (US$898 million) in total.

Julie II has achieved a 25% deployment rate in just seven months, having executed four transactions to date. Julie II focuses on mid-sized brownfield core assets based in Europe, with a focus on delivering diversified debt exposure across countries and sectors. These entail assets that provide essential services, are capital intensive with high barriers to entry, have a long economic life, deliver long-term cash flows, benefit from regulated markets and have low technological risk.

Examples of these opportunities include water and energy companies, railways, renewable energy portfolios, electricity grids, and roads. The fund also integrates environmental, social, and corporate governance (ESG) factors into its investment process.