Rivage closes third infra debt fund on €1bn

The Paris-based manager has held a final close on the fund, which will focus on investment-grade European infrastructure and aims to provide up to €75m of debt per project.

Paris-based investment manager Rivage Investment has held a final close on its third-generation infrastructure debt flagship at €1 billion.

The Rivage Euro Debt Infrastructure 3 fund held its first close seven months ago and has now closed to new commitments. The vehicle raised significantly more than its predecessor, REDI 2, which closed on €696 million in September 2017.

The fund’s investors consist of European insurance companies, and 40 percent of the commitments were from new investors.

REDI 3 will focus on investing in senior secured debt for infrastructure projects in Europe and will mainly look for investment-grade opportunities. It has already secured three deals in the transport and renewable energy sectors and is in the process of closing a fourth. It will focus on leveraging its direct origination capability to back mid-sized infrastructure projects. REDI 2 is now fully invested.

The fund has an 11-year average duration with a three-year investment period and 30-year legal maturity. It will target between 25 and 30 projects and provide between €15 million and €75 million of debt for each project.

Rivage aims to offer a spread of 200 to 250 basis points above the swap curve.