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UBS Starts New Infrastructure Debt Fund, $637M Raised


Banks are shrinking balance sheets as markets experience a shortage in finance, and UBS Group is stepping in to take advantage of the situation—the firm just raised $637M for its first European infrastructure debt fund.

That money comes from 17 investors, including insurers and pension funds in Japan and Europe, as asset managers begin to take on more risk in the search for higher returns to meet increasing liabilities brought on by low rates, Bloomberg reports. The fund will finance renewable energy and transportation projects, along with other infrastructure industries.

“Among investors, we see a strong and growing interest in alternatives. Infrastructure debt is an attractive alternative asset class that offers stable, long-term cash flows,” UBS Asset Management President Ulrich Koerner said in a statement. [Bloomberg]