NN Investment Partners (NN IP) has launched its infrastructure fund, European Sustainable Infrastructure Debt Fund (Fund), on November 15, 2018. The Fund aims to build a diversified portfolio of investment grade quality infrastructure debt across Europe in five core sectors, including social infrastructure, transportation, energy, utilities, and digital infrastructure. Traditionally, the low correlation of in infrastructure assets to economic cycles has attracted long-term investors seeking to diversify their portfolios, match their liabilities and earn attractive returns.
The Fund would help NN IP further expand in the sustainable franchise and meets increasing demands for investments in real assets. Infrastructure debt is widely seen by many investors as being particularly attractive as it offers compelling risk-adjusted returns and at the same time contributes to providing essential public assets and services that generate significant social, environmental and economic benefits.
The Fund will be managed by NN IP’s dedicated Infrastructure Debt team. It leverages off the team’s established investment selection and credit processes while keeping a strong focus on diversification and sustainability. The Fund has a target annual gross return of 3%-4% and a duration of 12 to 15 years.