- Multi-manager programme with explicit ESG component in accordance with Art. 8 of the Transparency Regulation
- Planned launch in summer 2024 with target capitalisation of EUR 300 million
- Infrastructure as an attractive asset class with high investment needs, increasing demand for private capital and good return opportunities
Frankfurt am Main, Munich, 28 May 2024 - Metzler Asset Management GmbH (“Metzler AM”), a subsidiary of Frankfurt-based Bankhaus B. Metzler seel. Sohn & Co. AG, and YIELCO Investments Group (“YIELCO Investments”), a specialist in private markets, have agreed on a long-term cooperation and announced the launch of a globally focused infrastructure fund in Luxembourg this summer. The cooperation combines the respective expertise and strengths of the two companies and offers investors an attractive investment opportunity in sustainable infrastructure with the jointly launched investment programme.
YIELCO Investments specialises in investment solutions in the infrastructure, private debt and private equity asset classes and has already successfully implemented three generations of infrastructure programmes — its expertise flows primarily into the selection of target funds. Metzler AM has a successful track record in the active management of investment strategies based on various liquid asset classes and will be responsible for the comprehensive integration of sustainability aspects.
The multi-manager programme with a target capitalisation of EUR 300 million aims to achieve an attractive, long-term investment return by investing in a globally diversified portfolio of primary and secondary investments in infrastructure target funds. A universe of around 150 underlying infrastructure investments is to be covered via at least ten fund investments. The investments will be broadly diversified across different sectors, managers and strategies. A holistic ESG integration with active ESG screening will be implemented in the investment process, supplemented by comprehensive and transparent reporting. The fund will be classified in accordance with Article 8 of the EU Disclosure Regulation.
Philip Schätzle, Managing Director and Head of Sales at Metzler AM, says: “We are delighted to be realising this infrastructure project together with such an experienced and professional partner. By launching the fund, we are on the one hand responding to the change in demand from our clients. On the other hand, the asset class is very important to us in the strategic asset allocation of our multi-asset and pension mandates. We see infrastructure as a long-term growth theme with high investment demand for private capital, not least fuelled by the European Green Deal.”
Infrastructure themes offer a broad spectrum of investment opportunities
The infrastructure investment needs for G20 countries amount to approx.. USD 100 trillion.[1] Energy supply and transport infrastructure account for the largest share (around 80 percent), but decarbonisation and digitalisation also play an important role. Both traditional operating companies — e.g. wind farm operators, toll roads, data centres, power grids — as well as suppliers and service providers are characterised by high growth potential. Growth is being driven by structural demand, political and social necessity and the upcoming global energy transition.
Uwe Fleischhauer, founding partner and member of the Executive Board of YIELCO Investments AG, explains: “Infrastructure as an asset class has experienced an extraordinarily exciting development in recent years with significant growth and the associated increase in complexity and diversity. Its long-term attractiveness is reflected in the fact that it is now established as an asset class among institutional investors and is experiencing a relevant and increasing portfolio allocation. To date, expectations of the asset class have been more than fulfilled. The need for investment remains extremely high and the demand for private capital will continue to increase, as only three per cent of total investment requirements are currently covered by private capital. In the private capital market, global infrastructure offers attractive return opportunities and inflation protection in line with ESG criteria. Together with Metzler Asset Management as a strong partner, we are now looking forward to continuing the fourth generation of the YIELCO infrastructure investment programme, which will build on the strategy of the very successful ongoing investment programmes.”
About Metzler
The core of the Metzler Group is Bankhaus Metzler, the longest-standing German private bank in continuous family ownership for 350 years. Bankhaus Metzler focuses on customised capital market services for institutions and discerning private clients. Metzler Asset Management GmbH, a subsidiary, offers investment services for institutional clients. The topic of sustainability has played an important role at Metzler AM for over 20 years. The company has been a signatory to the UN Principles for Responsible Investment (UN PRI) since 2012 and joined the “Net Zero Asset Managers Initiative” in November 2021. Many years of experience enable Metzler AM to consistently and continuously develop its ESG approach in line with the increasing sustainability requirements of investors.
About YIELCO
YIELCO Investments is an independent global private markets investment specialist headquartered in Germany with offices in Switzerland, Spain and Luxembourg. The group manages over 10 billion euros in capital commitments from institutional investors and invests in the private debt and private equity asset classes in addition to infrastructure.
Disclaimer
This is a marketing advertisement. The fund described in the communication is currently in pre-marketing in accordance with Article 30a of EU Directive 2011/61/EU of 8 June 2011 on Alternative Investment Fund Managers and is therefore not yet open for subscriptions. AlterDomus Management Company S.A. has been appointed as potential AIFM of the fund. The fund is only offered to professional investors within the meaning of Annex II of Directive 2014/65/EU (MIFID II) and semi-professional investors in accordance with Section 330 of the German Investment Code (KAGB). Investments in infrastructure funds are highly illiquid and entail a high level of risk. The targeted high returns may not be achieved. The value of an investment can fall as well as rise. There is a risk of a total loss of the invested capital.
Contact for press enquiries
YIELCO Investments AG
Susanne Rizzo
Phone +49 89 2323 9297–36
susanne.rizzo@yielco.com
Metzler seel. Sohn & Co. Aktiengesellschaft
Florian Brückner
Press Spokesman
Phone +49 69 2104–4968
Florian.Brueckner@metzler.com
[1] Source: Citi Report: Infrastructure for Growth; 2022 Update; cumulative total for the years 2017–2040
