BNP Paribas Asset Management Alts (BNPP AM Alts) has raised €1.2bn (£1.03bn) for its second European junior infrastructure debt fund at final close.
The European Junior Infra Debt Fund II secured commitments from a mix of European and Asian investors, including both existing and new backers, the manager said.
The fund, classified as an Article 8 fund under SFDR regulations, gives investors exposure to investments spanning renewable energy, utilities, digital infrastructure, clean mobility and social infrastructure.
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Since launching in August 2024, the fund has completed close to 10 investments, predominantly in the energy transition, green mobility and digital infrastructure sectors. This includes solar project platforms, pan-European rail and data centres, with a focus on western Europe, according to BNPP AM Alts.
As an Article 8 fund, environmental, social and governance criteria is integrated into its investment approach, BNPP AM Alts added.
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“The success of the fund raise demonstrates the strong underlying demand from institutional investors for specialised infrastructure debt strategies aiming to offer a strong cash yield, attractive illiquidity premiums, compared to corporate bonds, and exposure to Europe’s energy transition and digital infrastructure boom,” BNPP AM Alts said.
“The asset class is benefitting from significant structural tailwinds including the regulatory and commercial transition towards electrification, digitisation and decarbonisation.”
Currently, BNPP AM Alts’ infrastructure debt platform manages €15bn and has deployed €24bn across both junior and senior infrastructure debt strategies, according to the firm.
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