Prime Capital AG has lowered the fundraising target for its debut Prime Sustainable Infrastructure Debt Fund, which finances sustainable infrastructure projects across Europe.

Prime Capital AG has reduced the fundraising target for its debut Prime Sustainable Infrastructure Debt Fund to €200m–€250 million (US$290 million), down from the original €300 million (US$348 million), while extending the fundraising timeline to July 2026. Launched in Q3 2023, the fund has already deployed roughly 75–80% of its capital into mid-market infrastructure projects across Europe and the Nordics, focusing on areas such as the energy transition, decarbonisation, and modern infrastructure assets. The strategy is reportedly generating a gross IRR of about 10.5% and aims to provide an 8% cash yield, and it is classified as an Article 9 product under the EU’s Sustainable Finance Disclosure Regulation (SFDR).

The revised target reflects an ongoing tendency among some investors to favour larger asset managers, although there are signs that limited partners are beginning to shift attention back toward mid-sized managers as part of portfolio diversification strategies. At the same time, market conditions have become more supportive, with European base rates declining and infrastructure debt gaining appeal as volatility in corporate credit markets increases. The fund is anticipated to begin returning capital to investors by late 2027. Prime Capital AG, which oversees about €4 billion (US$4.64 billion) in assets, is reportedly preparing to launch a follow-on fund in the first half of 2027, targeting €300m to €500m, in line with the expected end of the investment period for the Prime Sustainable Infrastructure Debt Fund.