Swiss Life Asset Managers launches its first open-ended private infrastructure fund

12 February 2024

With the launch of “Swiss Life Funds (LUX) Privado Infrastructure S.A., SICAV-ELTIF”, Swiss Life Asset Managers enables private, as well as institutional investors in select European Union countries and Norway, as well as qualified investors in Switzerland to invest in private infrastructure markets, an asset class traditionally reserved for institutional investors.

“Swiss Life Funds (LUX) Privado Infrastructure S.A., SICAV-ELTIF” (Privado Infrastructure) offers
eligible investors exclusive access to a portfolio of private infrastructure investments. The fund is targeting both private and institutional investors in certain EU countries and Norway, as well as qualified investors in Switzerland according to Art.10 paragraph 3 and 3ter CISA (“eligible investors”).

The strategy of the fund is to create a well-diversified infrastructure portfolio across OECD
countries, focusing on healthy returns in sectors such as renewable energy, energy and utilities, communications, transport, and social infrastructure. From day one, investors participate in an exclusive and diversified portfolio of over 40 private infrastructure companies such as wind- and solar parks, hydropower plants, recycling companies, data centres, fibre networks, district heating networks, railway wagons, private hospitals, and many others.

Eligible investors can invest in Privado Infrastructure via their bank or trusted financial intermediaries. Besides the access to a diversified, growing portfolio that provides essential services to society, eligible investors invest alongside the Swiss Life Group, the largest life insurance company of Switzerland and one of
Europe’s leading comprehensive life, pensions and financial services providers.

Privado Infrastructure is actively managed without reference to an index. The initial subscription period ends on 30 April 2024. Thereafter eligible investors have the possibility of monthly subscriptions and quarterly redemptions with certain gates. Due to the recommended investment period of at least seven years, the
fund is complementary to existing investments in other asset classes such as cash, bonds, equities or real estate.

Private infrastructure remains a compelling asset class

Investing in infrastructure is a way to diversify a portfolio and enhance risk-adjusted returns. Additionally, infrastructure investments offer growth potential as well as stable cash flows. The financed projects are infrastructures that are essential to the economy and society, such as transport networks, hospitals, schools, water treatment and supply plants, power generation plants or modern telecommunication installations. They correspond to long-term needs, that will not disappear in the short term, and contribute to improving the living and working environment, fostering economic efficiency. Furthermore, they contribute to the growth and development of communities and businesses, all the while creating employment opportunities.

Global need for funding

The pressing global need for substantial infrastructure is widely recognised – upgraded or new infrastructure will be pivotal to the future availability of clean drinking water, housing and business space, lighting, sanitation, and other vital resources. As a result, the total global requirement for infrastructure investment is estimated at USD 3.9 trillion annually. Economic expansion, urbanisation and population growth are making the need for new and updated infrastructure even more urgent. Such investments are not optional: infrastructure is critical not only for meeting basic human needs, but also for supporting economic growth and maintaining quality of life. The challenge is not just to secure funds for the substantial investment required and direct them toward the right infrastructure projects. Swiss Life Asset Managers believes that it is also necessary to provide the required infrastructure in an affordable, socially equitable and environmentally sustainable manner, all within the context of the evolving challenges posed by climate change.

Characteristics of European Long-Term Investment Funds (ELTIF)

An ELTIF provides eligible investors with access to private markets or real assets such as infrastructure. The aim of the ELTIF Regulation is to encourage long-term investments in the real economy, which includes listed and unlisted private companies, infrastructure projects and real estate investments. ELTIFs can provide access to eligible investors searching for yield through a regulated vehicle tailor-made for long term, illiquid and real assets. ELTIFs can represent a safe pathway for investors interested in private market investments. Since 2011 Swiss Life Asset Managers specialises in direct infrastructure equity investments, offering clients an attractive and diversified portfolio. The expert team of 65 professionals has Assets under Management of EUR 10 billion and has undertaken 75 direct investments in all major infrastructure sectors. With each direct investment, the team seeks to drive change through board seats and active ownership, focusing on creating value for our clients.

Source: Swiss Life
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