Schroder Asset Management Achieves 1 Billion Euro Hard Cap for 'European Subordinated Infrastructure Loan Fund'

[Asia Economy Reporter Minji Lee] Schroder Investment Management announced on the 29th that it has raised 1 billion euros (approximately 1.4 trillion KRW) in the third subscription of the ‘Schroder Europe Subordinated Infrastructure Fund No. 2,’ which was launched in July last year.

This fund aims to invest in subordinated loan bonds of infrastructure assets managed within Europe, with participation from major institutional investors from countries including Korea, Germany, France, and Japan. At the time of the launch of Schroder Europe Subordinated Infrastructure Fund No. 2, the target amount was 750 million euros (about 1.05 trillion KRW), but due to increased investor interest in niche area investments amid the COVID-19 pandemic, the fund reached its 1 billion euro hard cap within one year of launch.

In Korea, 383 million euros (approximately 511.5 billion KRW) were raised, accounting for 38.3% of the total global subscription amount. The investment was raised in three rounds. In July last year, 163 million euros (about 230 billion KRW) were raised from four institutions; in February, 140 million euros (189.7 billion KRW) were secured from five institutions; and in July this year, 80 million euros (106.8 billion KRW) were successfully raised from two institutions.

The Schroder Europe Subordinated Infrastructure Loan Fund is a fund that executes diversified investments across various European countries and sectors through loans to core infrastructure assets of mid-cap (medium-sized) companies operating in Europe. These infrastructure assets provide essential services, are capital-intensive, and have high entry barriers. Additionally, they have long usage cycles, generate stable cash flow over extended periods, are guaranteed returns through market regulations, and have low technical risks.

Going forward, Schroder plans to review investment opportunities in various infrastructure sectors such as water resources, renewable energy, power grids, and roads, and operate the fund by comprehensively considering companies’ ESG (Environmental, Social, and Governance) factors during the investment process.

Chantal Pelletier, Head of Schroder Capital Global Infrastructure, stated, “The reason this fund was able to reach the 1 billion euro hard cap within one year is thanks to investors’ trust in Schroder’s expertise and the successful management experience of the first fund launched in 2017.” She added, “In the post-COVID era, infrastructure-related industries are expected to be the foundation of global economic recovery, and we will continue to strive to capture megatrends in infrastructure investment and build a stable portfolio.”

Meanwhile, in June, the Schroder Group launched the Schroder Capital brand by integrating its private asset-related business units within the group. Schroder Capital will include private equity, securitized bonds, asset-backed loans, private loans, real estate, infrastructure, insurance-linked securities, and BlueOrchard (specialized in impact investing). It also plans to build various private asset strategies to help clients view financial markets from a global perspective and approach investments from a local viewpoint.

This content was produced with the assistance of AI translation services.