Allianz Global Investors (AllianzGI) has reached final close of the Allianz European Infrastructure Fund S.A. RAIF (AEIF) after only nine months. The demand from institutional investors across Europe for the AEIF, which is managed by Allianz Capital Partners, significantly exceeded the expectations. The total fund size reached EUR 860 million (S$957.92 million) for equity investments in European infrastructure projects.
Backed by strong demand from investors, the fund’s target size was increased from EUR 500 million (US$556.93 million) to EUR750 million (US$835.39 million). The AEIF reached first close above EUR 600 million (US$668.313 million) in September 2019 and its final close also exceeding the newly increased target size at EUR 860 million (US$957.92 million) in November 2019. The fund was heavily oversubscribed.
Through the AEIF institutional clients will for the first time be able to make equity investments alongside Allianz insurance companies in a multi-billion euro program to invest in infrastructure across Europe. As its first investment, AEIF holds a stake in Elenia, Finland’s second-largest electricity distribution company, next to Allianz.
Future transactions in Europe will be funded by both the AEIF and Allianz insurance companies, the latter contributing at least 50% of the invested capital, thereby creating strong alignment. The investment focus will be on energy, transportation and communication infrastructure that provide essential services for the public.