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Swiss Life launches first open-ended private infrastructure fund

Swiss Life launches first open-ended private infrastructure fund

Swiss Life Asset Managers announced the launch of its inaugural open-ended private infrastructure fund, Swiss Life Funds (Lux) Privado Infrastructure SA, Sicav-Eltif, on Thursday 8 February 2024, offering both private and institutional investors in selected European Union countries, including Luxembourg, and Norway and Switzerland, the opportunity to invest into the private infrastructure market. Traditionally, this market was predominantly accessible to institutional investors, making this a notable shift in accessibility for a broader investor base, said Swiss Life.

The Privado Infrastructure fund, domiciled in Luxembourg, is designed to grant eligible investors exclusive access to a diverse portfolio of private infrastructure investments, the firm said. Focusing on sectors such as renewable energy, utilities, communications, transport and social infrastructure, the fund aims to cultivate a well-diversified infrastructure portfolio across OECD countries, stated the press release. From the outset, investors will have access to a portfolio comprising over 40 private infrastructure entities, including wind and solar parks, hydropower plants, recycling operations, data centres and various other critical services. Investment in the fund is facilitated through banks or trusted financial intermediaries, enabling eligible investors to partake alongside the Swiss Life Group.

Privado Infrastructure distinguishes itself by operating independently of any index, clarified Swiss Life. The initial subscription period is set to conclude on 30 April 2024, after which monthly subscriptions and quarterly redemptions will be available, subject to specific conditions. The fund operates within the framework of European long-term investment funds (Eltifs), and Swiss Life recommends a minimum investment period of seven years. According to Swiss Life, infrastructure investments are well positioned to diversify portfolios, enhance risk-adjusted returns, and provide stable cash flows.

Amidst a global recognition of the urgent need for substantial infrastructure investment, economic growth, urbanisation and population increases demand for new and updated infrastructure, pivotal for basic human needs, economic advancement and quality of life improvements, reasoned Swiss Life.

Swiss Life Asset Managers, with a team of 65 professionals, has a portfolio of €10bn in assets under management and a track record of 75 direct investments across major infrastructure sectors since 2011.