MEAG eyes €500m for infrastructure debt fund

The asset management arm of Munich Re and ERGO Group has already collected €200m in a first close for the new fund.

Munich-based MEAG has reached a first close of €200 million for a new infrastructure debt fund targeting €500 million.

The asset management arm of German insurance firms Munich Re and ERGO expects to make its first investment through the MEAG Infrastructure Debt Fund Sub-Fund 1 this month. It is understood the fund will invest primarily in senior debt and only in Europe.

The fundraising is MEAG’s first attempt to raise an infrastructure debt fund, with the group having previously invested in almost 50 projects on a separate account basis, such as UK rolling stock and the London Gateway Port.

It also has a significant infrastructure equity business which has seen it invest in motorway services provider Tank & Rast, as well as renewable energy assets in the Nordics and the US.

“We designed the fund to meet the specific needs of regulated investors. This has met with a positive response in the market and makes us confident for the second funding round,” said Harald Lechner, managing director of MEAG, in a statement.

MEAG’s infrastructure debt business has been headed up by Thomas Bayerl since 2014. The asset manager last year also began a push into infrastructure debt in North America, which is led by senior vice president Rudi Stuetzle.