German asset supervisor Patrizia has launched its first European Lengthy-Time period Funding Fund (ELTIF), centered on infrastructure fairness and debt.
The Patrizia Infrastructure Make investments Fund is being supplied to personal {and professional} traders via the agency’s wealth options unit and has been developed in partnership with fund service platform Common Funding.
Learn extra: ELTIFs particular report: The highway to retail
The Luxembourg-domiciled evergreen car will deal with infrastructure belongings aligned with what it sees as 4 key international megatrends: digitalisation, urbanisation, power transition and dwelling transition.
It would make investments each straight and by way of goal funds, and prioritises European and different OECD markets. The fund is concentrating on a complete funding return of eight per cent and ongoing distribution of over 4 per cent.
“With our first ELTIF, we’re making our deep infrastructure experience accessible to personal {and professional} traders by way of wealth intermediaries,” mentioned Sebastian Baer, head of wealth options worldwide at Patrizia.
Learn extra: Candriam and Kartesia launch personal debt ELTIF
“Combining infrastructure fairness and debt with an asset allocation overlay, backed by our confirmed observe document, is a key differentiating answer. This enhances our fund and bespoke options providing for personal wealth.”
The ELTIF construction is designed to make it simpler for people to entry long-term, illiquid investments. It was revised final 12 months – dubbed ELTIF 2.0 – to enhance liquidity, broaden funding alternatives and simplify advertising and marketing.
“Infrastructure presents a compelling alternative for long-term portfolios, providing each stability and diversification,” mentioned Graham Matthews, head of fund administration infrastructure at Patrizia.
“At Patrizia, we specialize in mid-cap infrastructure investments, and thru this ELTIF, personal wealth traders will achieve entry to the identical high-quality belongings as our institutional shoppers.”
Patrizia manages over €55bn (£46.2bn) in belongings. It’s increasing into infrastructure for personal traders to assist meet its goal of rising its belongings beneath administration to €100bn by 2030.
Learn extra: BNP Paribas: ELTIF 2.0 will drive development in 2025