Macquarie Asset Management has closed its inaugural Macquarie European Infrastructure Debt Fund (MEID) with €1.2bn raised, alongside €2.3bn secured through separately managed accounts, reflecting increasing institutional investor appetite for infrastructure debt as a stable, long-term asset class.

The MEID fund was launched in response to rising demand from European insurance companies for a pooled investment vehicle aligned with Solvency II regulations.

Designed specifically for insurers and pension funds, the fund is already over 80 per cent deployed across 24 investments spanning renewable energy (solar and wind), digital infrastructure (fibre and data centres), transportation (roads, rail, ferries, motorway services), and other energy assets.

Macquarie Asset Management said the announcement showcases how institutional investors are increasing their allocations to infrastructure debt, recognising its ability to add diversification and act as an inflation hedge to a portfolio.

It said the asset class has demonstrated resilience and the ability to offer stable cash flows, offering attractive risk-adjusted returns, compared to similarly rated corporate bonds.

Macquarie Asset Management head of infrastructure and investment grade private credit EMEA, Tom van Rijsewijk, said: “We are extremely proud to announce the close of our first European Infrastructure Debt Fund.

“Recent market volatility has highlighted the need from institutional investors for diversified portfolios that can provide long-term stable returns, and experienced managers with deep knowledge of this asset class. We are thankful for the confidence investors have placed in us.”

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